Busy week with Fed meeting, inflation report, Apple conference highlights

June is typically a slow month for the U.S. stock market, but the week ahead looks to be an active one.

This includes major economic reports, earnings from one of the fastest-growing technology companies, Apple’s annual Worldwide Developers Conference, and the Federal Open Market Committee (FOMC) meeting on interest rates.

Let’s take a closer look at the busy week ahead.

Circle Wednesday on your calendar

Wednesday will be an interesting day for the markets and could lead to some volatility depending on how things play out. The U.S. Department of Commerce is expected to release May numbers for the Consumer Price Index (CPI), which measures inflation before markets open.

Inflation is the main reason why interest rates are so high, so a low CPI number could influence the Fed to take action on interest rates sooner rather than later. Last month, the inflation rate fell from 3.5% to 3.4%. So another tick down would create momentum towards the Fed’s target inflation rate of 2%.

On the other hand, rising inflation will almost certainly force the Federal Reserve to delay any interest rate moves until at least September. Economists expect the CPI to stay at 3.4%, but we’ll find out on Wednesday morning.

At 2 PM ET on Wednesday, the FOMC is scheduled to conclude its two-day meeting and announce its decision on the federal funds rate. Although policymakers will almost certainly not lower interest rates, the inflation report could influence the timeline for easing.

As for the timeline, the Federal Reserve is scheduled to release its quarterly outlook summary, or dotplot, on Wednesday. The dot plot summarizes FOMC members’ thoughts on a variety of economic issues, including the trajectory of interest rates over the next few years.

The last dot plot in March called for three interest rate cuts in 2024, but that now looks highly unlikely. The consensus is likely to fall to two rate cuts in 2024, but just one cut is not out of the question.

Broadcom and Apple

If there were a group of stocks in the Magnificent Eight, Broadcom (NASDAQ:AVGO) could be eighth. Semiconductor companies are booming due to AI-enabled chips that power wireless and mobile networks.

Broadcom is considered one of the best AI stocks, with an average annual return of 35% over the past five years. It has risen 31% so far this year.

Broadcom is set to close out Wednesday with a bang with its next quarterly earnings report, which could move markets one way or another in the hours leading up to Thursday, depending on the results.

Another big event of the week is Apple’s (NASDAQ:AAPL) annual Worldwide Developers Conference (WWDC), which will be held throughout the week and conclude on June 14.

The keynote, scheduled for Monday at 10am PT/1pm ET, could set the tone for the entire week as Apple unveils its latest platforms and technologies. The reveal could include details about iOS 18, which is rumored to be one of the most significant iPhone updates ever.

Investors are hoping WWDC will move the needle on Apple’s declining stock price.