Wall Street Week Ahead: Key Insights on US-China Trade Talks, Inflation Trends, Jerome Powell's Speech, and Q1 Earnings to Watch

Investors on Wall Street are gearing up for a week filled with critical economic indicators, including consumer price inflation, retail sales, and the Producer Price Index. The focus will also shift to the outcomes of ongoing trade discussions between the United States and China, along with a significant speech by Federal Reserve Chair Jerome Powell in Washington, D.C. Additionally, first-quarter earnings reports are set to be released, providing further insights into the economic landscape.

Key Economic Updates to Watch

In a recent statement, U.S. Treasury Secretary Scott Bessent highlighted that substantial progress has been made in trade negotiations with China. He plans to share more details soon. Over the weekend, Bessent and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng in Geneva, aiming to ease tensions between the world’s two largest economies. Greer mentioned that the gaps between the U.S. and China are not as significant as previously believed.

Upcoming Economic Reports

Investors should mark their calendars for several important economic reports scheduled for release:

May 13 (Tuesday):
- NFIB Optimism Index for April
- Consumer Price Index (CPI) for April
May 15 (Thursday):
- Initial jobless claims for the week ending May 10
- U.S. retail sales for April
- Producer Price Index (PPI) for April
- Empire State Manufacturing Survey for May
- Philadelphia Fed Manufacturing Survey for May
- Industrial Production for April
- Capacity Utilization for April
- Home Builder Confidence Index for May
- Jerome Powell’s speech
May 16 (Friday):
- Import Price Index for April
- Housing Starts for April
- Preliminary Consumer Sentiment for May

Earnings Season Highlights

A number of prominent companies are set to unveil their first-quarter earnings this week, including:

Fox Corp
Acadia Healthcare
Hertz Global
JD.com
Intuitive Machines
Cisco
Nextracker
Boot Barn Holdings
Walmart
Alibaba ADR

Market Recap

Last week, U.S. stock indices concluded on a subdued note. The Dow Jones Industrial Average fell by 119.07 points (0.29%), finishing at 41,249.38. The S&P 500 dipped 4.03 points (0.07%) to settle at 5,659.91, while the Nasdaq Composite remained relatively flat, gaining a mere 0.78 points to close at 17,928.92. In the bond market, the yield on the 10-year Treasury slightly increased to 4.38% from 4.37%.

This week promises to be eventful for investors as they digest pivotal economic data and keep an eye on international trade developments. With the potential for new foreign trade agreements on the horizon, as noted by White House economic advisor Kevin Hassett, the market dynamics could shift significantly. Stay tuned for more updates as these events unfold!