Five Market Movers This Week: From Fed Decisions to Tech Earnings
Market News 05 May
Last week on the markets was truly striking: the S&P 500 and Nasdaq Composite confidently broke above their 50-day moving averages, largely thanks to impressive earnings from Microsoft and Meta. Investors, seemingly more reassured after a series of mega-cap tech earnings reports and the release of key economic indicators, have become more optimistic again. Yet the same questions remain: what will the Fed decide, and how will the market react to inflation data and labor-market developments? Below are the five main events that will set the tone for trading in the coming days.
1. Federal Reserve Policy Decision
On Wednesday at 2:00 PM ET (9:00 PM Skopje time), the Fed will announce its interest-rate decision and publish an updated policy statement, followed by Jerome Powell’s press conference at 2:30 PM ET (9:30 PM Skopje time). Although a rate change is unlikely, investors will scrutinize the statement’s language and any hints about future policy direction. Of particular importance are the Fed’s assessments of current inflation and economic growth—these will indicate when and how likely rate cuts may begin. Markets have already priced in easing toward year-end, but a single shift in Powell’s rhetoric could instantly reshape those expectations.
2. Services-Sector Data
Monday kicks off with the release of non-manufacturing sector activity: the Services PMI at 9:45 AM ET (4:45 PM Skopje time) and the ISM Non-Manufacturing PMI at 10:00 AM ET (5:00 PM Skopje time). These indicators offer a fresh snapshot of the largest part of the U.S. economy. With services remaining the growth engine while manufacturing sends mixed signals, traders will pay close attention—especially to the ISM’s prices-component, which could reveal ongoing inflationary pressure and influence Fed expectations ahead of Wednesday’s meeting. Companies sensitive to consumer spending and business-services demand may see heightened volatility based on these releases.
3. Next Wave of Tech Earnings
The tech sector will continue to flex its strength: Palantir reports on Monday, followed by Advanced Micro Devices and Arista Networks on Tuesday, and ARM Holdings on Wednesday. Thursday brings results from Shopify and Cloudflare. These reports will shed light on investments in AI infrastructure, corporate IT spending, and trends in e-commerce. Coming on the heels of last week’s mega-cap results, they will help complete the picture of sector health across various market segments and could drive sector-rotation strategies.
4. 10-Year Treasury Auction
On Tuesday at 1:00 PM ET (8:00 PM Skopje time), the Treasury will auction 10-year notes. Market participants will assess both bid demand and auction yields—key gauges of confidence in U.S. sovereign debt amid rising budget deficits and persistent inflation. Treasury yields directly influence equity valuations, particularly for growth and dividend-paying stocks. Because this auction occurs just before the Fed decision, it adds another layer of potential volatility as markets digest both events nearly simultaneously.
5. Consumer-Focused Earnings
Several consumer-oriented companies report this week, offering insight into spending patterns across demographic groups. Ford reports on Monday, Uber and Walt Disney on Wednesday, and Coinbase on Thursday. Their quarterly results will illuminate demand for transportation, entertainment spending, and engagement with digital assets. Management commentary on consumer behavior, pricing strategies, and outlooks will be especially critical in gauging whether consumption remains robust enough to support further economic expansion. Since consumer spending accounts for roughly 70% of U.S. GDP, these updates can significantly sway sector positioning and broader market sentiment.
The recent break above key moving averages and strong tech earnings have set a positive backdrop, but ahead lies a week of key tests: from the Fed’s view on inflation to real demand for Treasuries and reports from both tech and consumer leaders.