In the new trading week, investors will be focusing in particular on the Fed minutes from the most recent central bank meeting, which will be scrutinized for monetary policy clues. In addition to US GDP growth rates, important price data for the United States will also be published. The resurgent developments in the smouldering trade dispute are also likely to attract attention. The publication of fresh quarterly figures from NVIDIA, which are expected on Wednesday, could also cast a shadow.
Trump threatens EU with tariffs of 50 percent - trade disputes could unsettle investors
US President Donald Trump threatened the European Union (EU) on Friday with tariffs of 50 percent on goods from the EU. According to Trump, negotiations with Brussels have been difficult to date. "Therefore, I am recommending a direct tariff of 50 percent for the European Union starting June 1, 2025."
As in the previous week, investors should also keep an eye on speeches by Fed monetary policy representatives. Neel Kashkari from the Minneapolis branch of the Fed is expected to speak at around 10:00 on Tuesday morning and at the same time on Wednesday. In the afternoon, it is important to keep an eye on new data on new orders for durable goods (14:30). Since these goods are usually associated with higher spending, they could provide important clues about US activity.
"FOMC Minutes" could send monetary policy impulses on Wednesday
In the middle of the week, the focus shifts to the so-called "FOMC minutes" in the evening (20:00). In this context, investors are hoping for clues about the shape of US monetary policy. Two weeks ago, the Fed left the interest rate band unchanged, as expected.
Last Thursday, for example, Fed board member Christopher Waller told Fox Business that he was more optimistic about the tariff issue than he had been a month earlier.
"If we can reduce the tariffs to almost ten percent and everything is finalized around July, then we will be well positioned for the second half of the year," said Waller. A calming of the situation with regard to tariffs could lead to the US Federal Reserve considering interest rate cuts in the second half of the year.
US GDP and "PCE core deflator" for personal consumption expenditure round off the trading week
The second estimates for US gross domestic product (GDP) could be of great importance (14:30). The figures are likely to attract particular attention against the backdrop of the smouldering tariff dispute between the US and major economies.
The so-called "PCE core deflator" for personal consumption expenditure will take center stage on Friday afternoon (14:30). This price data could provide important inflation signals and thus send monetary policy impulses.
Investors are also likely to focus their attention on NVIDIA's figures for the past financial quarter, which are expected on Wednesday evening after the US stock market closes.
Dow Jones Industrial Average Index
Source: TradingView
NVIDIA
Source: TradingView
