What to Expect in Markets This Week: a New Consumer Price Index Reading and Updates from Tech Giants

• May CPI report arrives Wednesday after April showed 3.8% annual inflation, with gas prices up over 28% due to Iran conflict sealing off the Strait of Hormuz; core inflation at 2.8% suggests price pressures spreading beyond energy
• SpaceX IPO could raise $75 billion at a $1.75 trillion valuation and potentially happen this week, marking one of the largest public offerings in recent years
• Major tech earnings and events include Apple's Worldwide Developers Conference keynote Monday and Adobe's Q2 results Thursday, following CEO Shantanu Narayen's announced departure

Market Week Ahead: Inflation Data and Tech Earnings in Focus

Key Economic Events:

The May Consumer Price Index (CPI) report, due Wednesday at 8:30 a.m. ET, will be the week's centerpiece. April's CPI showed 3.8% year-over-year inflation, with gas prices surging over 28% due to conflict with Iran largely closing the Strait of Hormuz. Core inflation (excluding food and energy) rose 2.8%, indicating broader price pressures beyond energy. Other recent inflation metrics include the Producer Price Index and Personal Consumption Expenditures index rising 3.8% year-over-year in April.

Major IPO Development:

SpaceX has filed paperwork for a potential $75 billion IPO that could value the company at $1.75 trillion, possibly happening this week. This would be followed by listings from other billion-dollar companies Starlink and Boring Company.

Tech Sector Updates:

• Apple (AAPL): Keynote at Worldwide Developers Conference Monday at 1 p.m. ET, expected to unveil new technology
• Adobe (ADBE): Q2 earnings Thursday after close, followed by 5 p.m. conference call. Previous quarter beat expectations, but stock declined on CEO Shantanu Narayen's departure announcement

Other Earnings:

• Cracker Barrel (CBRL): Q3 results Tuesday after close
• Casey's General Stores (CASY): Q4 results Tuesday after close

Market Context:

Major indices retreated last week, with stocks declining over 50% from prior highs. Concerns center on potential Fed rate hikes following strong jobs data. The University of Michigan's Consumer Sentiment Index (Friday, 10 a.m. ET) hit its lowest level since the survey began in 1952.