Markets eye Middle East tensions, May core PCE and Fed stress tests next week

U.S.-Iran talks, key U.S. inflation and growth data, Fed bank stress-test results, and earnings from Cerebras Systems and Micron are in focus for broader risk sentiment and AI-chip demand signals.

Summary

Investor attention remains on Middle East developments and a busy run of U.S. data, with markets closely tracking U.S.-Iran talks after early panic on Monday over reports that negotiations had broken down. The macro calendar also includes May core PCE, jobless claims, GDP figures and the Federal Reserve’s annual bank stress-test results, all of which could influence sentiment. Cleveland Fed inflation forecasts indicate core PCE will hold at 3.3% in May, while headline PCE is expected to rise to 4.0% from 3.8%. On the corporate side, Cerebras Systems’ first quarterly report since listing and Micron Technology’s earnings are being watched for signals on AI-related and broader chip demand.

Terms & Concepts
  • core PCE: An inflation measure that strips out food and energy prices to show underlying price trends.
  • bank stress-test: A Federal Reserve assessment of whether major banks can withstand a severe economic downturn.
  • AI: Artificial intelligence, a technology area driving demand for advanced chips and computing infrastructure.