This week is packed with important events on the domestic front, while global conflicts also draw investors’ attention. Fighting between Iran and Israel escalated over the weekend, resulting in casualties in both nations. Iran has reportedly withdrawn from planned discussions with the U.S., raising concerns not only about the commodities market but also the overall stability of the region.
Several significant market-moving events are set to unfold over the coming days, including the Federal Reserve’s interest rate decision, key consumer spending statistics, and potential updates regarding President Donald Trump’s tariffs. The Juneteenth holiday on Thursday will lead to a halt in trading activities.
The Fed is scheduled to announce its interest rate decision on Wednesday. Investors will also be closely watching Tesla as the electric vehicle manufacturer could provide a pivotal update on its robotaxi service over the weekend.
On Tuesday, the U.S. retail sales data for May will reveal whether consumer spending has remained strong, vital for the economy as it constitutes roughly two-thirds of economic activity. Housing construction figures will also be under scrutiny to assess whether builders are keeping up with rising demand. Additionally, trade discussions between U.S. officials and key partners are ongoing, with investors attentive to any breakthroughs.
Corporate earnings reports will be sparse this week, but key reports are still anticipated from homebuilder Lennar, accounting firm Accenture, grocery chain Kroger, and online used car seller CarMax.
**Fed Interest Rate Decision Amid Pressure for Cuts**
Fed officials have maintained steady interest rates, citing a robust labor market and the need to monitor inflation impulses, particularly those potentially exacerbated by Trump’s tariffs. However, following May’s inflation data, which came in below economists’ expectations, pressure is mounting on the Federal Reserve. Despite calls from President Trump for a substantial rate cut, market analysts do not foresee any movement by the Fed at the conclusion of their two-day meeting on Wednesday.
The CME FedWatch Tool indicates that traders overwhelmingly predict the Fed will keep rates unchanged through June, with no anticipated changes even at the late July meeting. Following Wednesday’s session, Fed Chair Jerome Powell will address the media, providing additional insights into the central bank’s perspective on the economy and rates.
On the same day, May’s retail sales data will serve as a crucial indicator of the economy’s health. As housing prices remain challenging for buyers, housing data will also be analyzed closely. Tuesday will feature the latest homebuilder confidence readings, while Wednesday’s housing starts data will indicate whether construction rates are increasing in response to the pressing demand for homes.
**Anticipated Rollout of Tesla’s Robotaxi Service**
Tesla investors may finally receive a long-awaited update as CEO Elon Musk hinted that the company could launch its robotaxi service in Austin, Texas, as soon as Sunday, June 22. “We are being super paranoid about safety, so the date could shift,” Musk stated.
The launch of the robotaxi service represents a significant milestone for Tesla, which is betting on artificial intelligence and autonomous driving as the transportation technologies of the future. Analysts from Goldman Sachs suggest Tesla is well-positioned to dominate this market, leveraging its capabilities in AI development and high production scalability of self-driving technology.
Despite a quieter corporate earnings week, noteworthy updates are still expected, including Lennar’s report after Monday’s bell. This comes after the homebuilder flagged weaknesses in its last quarterly performance. Accenture and CarMax will report on Friday, following their own disappointing earnings from the previous quarter.
**This Week’s Calendar of Key Events**
**Monday, June 16**
– Data to Watch: Empire State manufacturing survey (June)
– Key Earnings: Lennar
**Tuesday, June 17**
– U.S. retail sales (May)
– Homebuilder confidence (June)
– Key Earnings: Jabil (JBL), John Wiley & Sons (WLY), and La-Z-Boy (LZB)
– Additional Data: Import/export price index (May), Industrial production/capacity utilization (May), Business inventories (April)
**Wednesday, June 18**
– Housing starts (May)
– FOMC interest-rate decision
– Federal Reserve Chair Powell’s press conference
– Key Earnings: GMS (GMS)
– Additional Data: Initial jobless claims (Week ending June 14)
**Thursday, June 19**
– Financial markets closed for the Juneteenth holiday
– Key Earnings: Smith & Wesson Brands (SWBI)
**Friday, June 20**
– Leading economic indicators (May)
– Key Earnings: Accenture, Kroger (KR), Darden Restaurants (DRI), and CarMax
– Additional Data: Philadelphia Fed manufacturing survey (June)
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