As we approach the week ahead, we’ll observe a temporary pause in the U.S. traditional markets due to the Memorial Day holiday on Monday. However, this break precedes a significant influx of economic data that could influence market dynamics.
Late last week, tensions related to the ongoing trade war resurfaced, with former President Donald Trump reigniting concerns by targeting phone manufacturers and the European Union. This renewed uncertainty led to a decline in technology stocks and a setback in the cryptocurrency markets, particularly following Bitcoin’s remarkable all-time high earlier in the week.
In a somewhat conciliatory move, Trump announced a delay on 50% of proposed EU tariffs until July 9, which has provided a temporary alleviation of tensions that may have spurred on the financial markets.
Economic Events from May 26 to 30
This week brings several key economic indicators. On Tuesday, consumer confidence data will be released, offering insights into spending sentiment among consumers.
On Wednesday, the Federal Reserve will share the minutes from its May meeting. While no major surprises are anticipated, investors are keenly watching for indications regarding potential rate cuts, as speculation arises regarding moves in the latter half of 2025.
Thursday’s agenda includes the Q1 GDP Growth Annualized report, which will shed light on economic growth figures for the initial three months of 2025. The advance estimate has already indicated a slight contraction, with GDP decreasing at an annualized rate of 0.3%.
Friday will wrap up the week with the release of April’s Core Personal Consumption Expenditures (PCE) report, which tracks inflation based on consumer spending patterns, excluding food and energy costs. Notably, PCE reports are closely monitored by the Fed as a key measure of inflation.
Key Events This Week:
1. US Markets Closed – Memorial Day – Monday
2. CB Consumer Confidence data – Tuesday
3. Fed Meeting Minutes – Wednesday
4. US Q1 2025 GDP data – Thursday
5. April PCE Inflation data – Friday
6. MI Consumer Sentiment data – Friday
We have a short but…
— The Kobeissi Letter (@KobeissiLetter) May 25, 2025
The preliminary readings for May’s Michigan Consumer Sentiment Index Inflation Expectations will also be highlighted on Friday, providing a summary of consumer confidence and their outlook on long-term inflation.
Furthermore, this week marks a crucial earnings period, with a focus on Nvidia’s financial results set to be reported on Wednesday. Positive results from this semiconductor giant may also influence the prices of AI-related tokens.
Crypto Market Outlook
In the cryptocurrency space, markets experienced a slight uptick during Monday morning trading in Asia, following the announcement regarding the tariff deadline extension for European products.
Currently, the total crypto market capitalization stands at approximately $3.56 trillion, maintaining a sideways channel that has developed since Bitcoin’s recent surge.
After reaching an all-time high of $111,814 on May 22, Bitcoin experienced a drop to $107,000 over the weekend but has since made a modest recovery, climbing back to the $109,500 mark on Monday morning.
Meanwhile, Ethereum faced challenges, slipping below the $2,500 threshold but has since shown some signs of recovery. Overall, its price fluctuations have been more subdued compared to Bitcoin’s dramatic changes.
In the altcoin terrain, Monday morning saw most altcoins in the green, with Solana and Cardano exhibiting notable gains. In particular, Hyperliquid experienced a remarkable surge of over 14% during the day.
In conclusion, this week brings a mixture of economic insights and market fluctuations, with potential implications for both traditional markets and the cryptocurrency realm.
