A Federal Reserve announcement on interest rates, comments from Fed Chair Jerome Powell, and earnings from AI darling Micron are on the way this week.
While the Fed isn’t expected to change rates when it makes its next interest rate decision on Wednesday, investors will closely follow Powell’s remarks after the meeting, which could shed light on how policymakers expect the Middle East conflict to affect the U.S. economy.
Memory chip maker Micron’s shares have surged amid the AI frenzy, and investors will look to the tech firm’s report for signals about the resilience of AI demand. Reports from FedEx and Dollar Tree could also offer indications about the strength of the economy.
Read to the bottom for our calendar of key events—and one more thing.
Fed Meeting Comes as Market Watchers Eye Interest Rate Path
The Federal Open Market Committee (FOMC) will discuss adjusting the federal funds rate from its current range of 3.5% to 3.75% when it meets this week. Central bankers got two key inflation reports last week, but the data isn’t expected to sway the committee. Investors are pricing in a near certainty that the Federal Reserve will keep interest rates at their current levels.
Chair Powell’s remarks after the decision on Wednesday will also be in the spotlight. Powell could speak to divisions in the FOMC, as some members want to see steeper rate cuts in light of weakness in the labor market while others are more worried about persistent inflationary pressures. The press conference could be Powell’s second to last, with his chairmanship scheduled to end in May.
Also Wednesday, the Producer Price Index will provide a look at wholesale inflation in February. January’s report showed wholesale prices rose more than expected to start the year. Reports on both new and pending home sales are set for this week as economists look for signs of improvement in a housing market that has stalled.
Micron Reports Amid Surge in Stock Price
Micron Technology reports earnings as its stock has surged on the AI boom, with its value more than quadrupling over the past year. The memory chip maker posted a 60% year-over-year sales jump in the prior quarter as its earnings shot by analyst estimates. But AI stocks have stumbled recently amid increasing investor worry over the technology’s economic impacts.
Global shipper FedEx will report its quarterly earnings on Thursday. Its stock has surged this year, rising by nearly 25%. Investors follow FedEx’s earnings for indications on what its global shipping business means for the overall economy.
Dollar Tree’s earnings will give investors a look at the strength of the U.S. consumer after its prior report showed that its shoppers were “stretched.” Other retailer and food industry reports could flesh out the consumer picture, including Five Below, General Mills, Lululemon, Macy’s and Darden Restaurants.
Nuclear power plant operator Oklo, which signed a deal earlier this year with Facebook-parent Meta to provide power for the firm’s energy-hungry data centers, plans to report earnings this week.
Earnings are due from Alibaba, China’s top tech firm, which plans to boost AI spending. Chinese EV maker Xpeng, a competitor to Tesla in foreign markets, is also set to report.
This Week’s Calendar
Monday, March 16
- Industrial production/capacity utilization (February)
- More Data to Watch: Empire State manufacturing survey (March), Homebuilder confidence index (March)
- Key Earnings: Dollar Tree (DLTR), Science Applications International (SAIC)
Tuesday, March 17
- Pending home sales (February)
- Key Earnings: Tencent Music Entertainment (TME), Lululemon athletica (LULU), Oklo (OKLO), DocuSign (DOCU)
Wednesday, March 18
- FOMC interest rate decision
- Fed Chair Jerome Powell press conference
- More Data to Watch: Producer Price Index (February), Factory orders (January)
- Key Earnings: Micron Technology (MU), Jabil (JBL), General Mills (GIS), Williams-Sonoma (WSM), Five Below (FIVE), Macy’s (M)
Thursday, March 19
- New home sales (January)
- More Data to Watch: Initial jobless claims (Week of March 14), Philadelphia Fed manufacturing survey (March), Wholesale inventories (January)
- Key Earnings: Alibaba Group (BABA), Accenture (ACN), FedEx (FDX), Darden Restaurants (DRI), PlanetLabs (PL)
Friday, March 20
- Key Earnings: Xpeng (XPEV)
One More Thing
The prices of eggs and smartphones are on the way down, but if you’re buying coffee or steaks, you’re likely seeing a price hike. Investopedia’s Sabrina Karl has more on what the latest inflation report says about prices consumers are seeing at the store.