Market Outlook for Next Week

Today, Sunday May 28th, Kevin McCarthy announced that, in principle the White House and the Republicans have reached a deal regarding raising the US debt ceiling. Tonight’s futures should rocket, on top of the moment built last week.

A 600 point to 800 point rise during the week is likely. Which stocks would be best during this updraft? Check out the best stocks of last week since this is just more momentum.

McCarthy said the deal will contain spending cuts which will help lower inflation. Investors are likely going to like this deal, and the S&P, NASDAQ, Dow Jones and Russell indexes should see a big rise this week. That is unless hard line Republicans sink the deal.

One concern for some (bankers) is that FED will need to sell $1 Trillion in treasury bills and the impact might be equal to another .25 FED rate hike. A flood of T-bills would result in slumping bond prices, as will a shift of money from money markets into equities. All in all though, this could help slow inflation and position the private sector for more growth in future. The key benefit is reduced government spending allowing inflation to fall, along with interest rates which allows big and small business to plan for growth in 2024.

Major stock indexes last week. Screenshot courtesy of Yahoo Finance.

Key Stats Reported last 3 weeks were:

Consumer Confidence fell in April to 101.3 vs 104.0 in March
Initial (weekly) Jobless Claims totaled 202,044 in the week ending May 20, up .7% from the previous week
Personal Spending for last week of April was .8%, up from .1% in March
Fed core lending rate rose .25%
CPI inflation rate rose to .4%
Core inflation excluding food and energy, core inflation eased to 5.5% from 5.6%.
NASDAQ composite is up 24.9% year to date
S&P is up 10% year to date
US dollar index rising up to 104.23

This Week’s Key events and reports:

Tuesday, May 30

S&P Case-Shiller home price index

Consumer confidence Index

Wednesday, May 31

ADP employment

Job openings

Thursday, June 1

Initial jobless claims

U.S. productivity

ISM manufacturing for May

Friday, June 2

U.S. employment and wage report

Weekly forecast hunters are pursuing clues about the direction of the Dow Jones, S&P, and NASDAQ for specific stocks or ETF’s worth buying or those they should dump. I’d like to hear from you about which stocks you think are the most likely stocks that will jump next week and over the next 6 months.

Is a Weekly Stock Forecast Even Possible?

Day traders especially zero in on these temporal changes in stock values. They love that volatility if they can figure it out. For the last few weeks, there’s been a lot of uncertainty regarding the Fed stimulus package. With it’s passing into action, that volatility might ease and we could be back to the bull market run.

The NASDAQ, S&P, Russell, and Dow Jones are all looking for bottoms but they’re not appearing. The questions about the Fed pivoting on the central rate hikes is growing. Increased volatility and political pressures will intensify as the US senate and house mid term elections near. November 8th will be on everyone’s mind soon.

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* Note: This post on next weeks stock prices is for informational and entertainment purposes and should not be regarded as investment advice for any market transactions. Please consult with your stock and financial advisor for investment decisions.

Market Outlook for Next Week

Key Stats Reported last 3 weeks were:

This Week’s Key events and reports:

Next week’s events from TradingView

Is a Weekly Stock Forecast Even Possible?

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