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Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024 in New York City.
Angela Weiss | AFP | Getty Images
This market rally should continue at least in the short term, according to Tom Lee, head of research at Fundstrat Global Advisors.
“As we stated earlier this month, we expected markets to shift from ‘fear of May’ to buy in May; and as each week has passed, this has been the case. Looking into next week, we expect this to continue,” he wrote in an email.
Artificial intelligence names are due to steal the spotlight this upcoming week, with Lee highlighting several potential catalysts, including the Microsoft Build event from Tuesday to Thursday and Nvidia’s fiscal first-quarter results, due Wednesday afternoon.
“Overall, we expect these events/earnings to reinforce the improving visibility and capabilities of AI and the related spending. And as a consequence, will be an overall positive for Technology stocks and the broader market,” the analyst added.
Palo Alto Networks, AutoZone, Target, Analog Devices, Intuit and Ralph Lauren will post their results in the upcoming days. The minutes from the Federal Reserve’s April 30 to May 1 meeting are due on Wednesday. Investors will also watch out for the latest readings on several pieces of economic data including existing home sales, jobless claims and durable goods orders.
