Three Things to Watch
- Producer Price Index reports on Wednesday and Thursday. Inflation remains top of mind and the May CPI report is forecast to show another acceleration to 4.2% overall inflation and 2.9% core inflation. The U.S. Federal Reserve targets price stability at 2% core inflation.
- The much-anticipated SpaceX IPO is scheduled for Friday. The company is targeting a $75 billion offering, which translates to a valuation of $1.8 trillion. The IPO will test investor appetites for large offerings with several more (including Anthropic) potentially on tap.
- The World Cup games will be hosted in 16 cities across three countries beginning Thursday. The economic impact in the United States is forecast at 185,000 full time jobs and $17.2 billion in gross domestic product.
Three Things to Know
- The 2026 World Cup kicks off on Thursday with several firsts. The tournament has been expanded to 48 teams for this iteration, and it will be the first time that the event will be jointly hosted by three countries: Canada, the United States and Mexico. (Source: Facts.net)
- Growth of consumer credit picked up in the first quarter to a 2.6% annualized rate, up from 2.1% in the fourth quarter. The increase was driven by 3.8% and 2.1% increases in outstanding revolving and nonrevolving credit, respectively. (Source: S&P Global)
- Bonds are now the most correlated with stocks on a short-term basis since 1999, according to Bank of America/Merrill Lynch. The 60-day rolling correlation between the S&P 500 and the Bloomberg Aggregate is approximately 0.6. (Source: Mike Zaccardi)
The above information reflects the current opinion of the author. It is based upon sources and
data believed to be accurate and reliable. Opinions and forward-looking statements expressed
are subject to change without notice. This information does not constitute a solicitation or an
offer to buy or sell any security mentioned.