Welcome to Extreme Investor Network, where we bring you the latest insights and updates on the Stock Market, trading, Wall Street, and more. Today, we dive into the recent developments in the market and what to expect in the upcoming week.
The May FOMC meeting saw the Fed funds target rate remain unchanged, with Fed Chair Jerome Powell emphasizing the need for greater confidence in the disinflation process before considering easing policy. While Powell’s ‘personal forecast’ suggests inflationary pressures may subside this year, the recent UK inflation data reflect a different story. Headline UK inflation slowed to +2.3% in April, highlighting challenges for the Bank of England in meeting its 2.0% inflation target.
Meanwhile, the S&P Global PMIs for May painted a positive picture for the eurozone and UK economies, with improvements seen in economic activity. The eurozone’s Composite PMI Output Index hit a 12-month high, while the UK’s Manufacturing PMI entered a 22-month high, signaling continued recovery. In the US, the Flash US Services Business Activity Index also showed an acceleration in economic performance, particularly in the service sector.
Looking ahead, inflation remains a key focus for investors. With US and UK banks closed on Monday for Bank Holidays, eyes will be on upcoming inflation data and its impact on monetary policy decisions. Stay tuned to Extreme Investor Network for in-depth analysis and expert insights on navigating the ever-changing landscape of the Stock Market.