Markets ended last week on a stronger note despite midweek drama from the Trump–Musk feud, which temporarily dragged down Tesla (NASDAQ:TSLA) and applied pressure across tech. With both parties going quiet and Musk deleting the tweet that sparked the escalation, tensions seem to have cooled—for now. As a result, the upcoming week could see a return to more stable footing, with investor focus shifting back to macro data and policy signals, especially as earnings season winds down.
On trade, optimism got a boost late last week after Trump and China’s President Xi reportedly had a productive call, with follow-up meetings scheduled in London. That alone may help lift sentiment in the near term. But with companies nearing the end of their tariff grace periods, time is running out. If talks stall or mirror the dysfunction seen in recent U.S.–Japan negotiations, the positive tone could evaporate quickly, leaving markets exposed to renewed downside. For now, markets are leaning hopeful—but without real progress, that hope turns into an overhang.
Macro takes center stage this week with the Consumer Price Index (CPI) and Producer Price index (PPI) for May due Wednesday and Thursday. Following last month’s softer Personal Consumption Expenditures (PCE) data, expectations are for a slight cooling in headline CPI with core inflation holding steady. Anything hotter could dash rate-cut hopes, while an unexpectedly weak print may revive fears of deeper economic cracks. Either way, with policy uncertainty already high, the margin for market comfort is narrowing.
Also on the radar is Wednesday’s 10-year Treasury note auction. With rising concern over the ballooning deficit and ongoing need to roll over maturing debt, investor demand and yield levels at this auction will be closely watched. A weak showing could push yields higher and spark renewed volatility, especially if inflation data comes in hot. Conversely, strong demand would signal confidence in U.S. debt markets and could help ease rate-related pressures in the near term.
Monday
Tuesday
Earnings: GME
Wednesday
Consumer Price Index (CPI)
Thursday
Producer Price Index (PPI)
Earnings: ADBE
Friday
Tracking This Week
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NVIDIA Inc (NASDAQ:NVDA) continues to consolidate, and this could be the week it breaks out of its recent range—depending heavily on developments from the ongoing US-China trade talks in London. Still, the stock has built a strong base, and recent quarterly results affirmed robust demand despite export restrictions. Guidance was confident, and commentary across the broader tech sector during earnings season reinforced the ongoing infrastructure buildout for AI. A breakout may be imminent, but even if not, the downside looks well-supported.
Taiwan Semiconductor Manufacturing (NYSE:TSM) has reclaimed the $200 level, which now looks like a solid base rather than a ceiling. With capacity expansion planned for the second half of 2025 and strong demand from major clients like NVIDIA and AMD, the company remains well-positioned. The rollout of its 2nm process later this year could be a game changer, particularly as it’s reportedly achieving 60–70% yield in testing—well ahead of Samsung’s 30–40%. With earnings still a few weeks away, the stock may have room to run.
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