Fed meeting, inflation report, Apple conference highlight busy week

June is typically a slow month for the stock markets in the U.S., but the week ahead looks like an active one.

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

Here’s a closer look at a busy week ahead.

Circle Wednesday on your calendar

Wednesday will be an interesting day for the markets and could result in some volatility, depending on how things go. Before the market opens, the U.S. Commerce Department is due to release the May reading for the Consumer Price Index (CPI), which measures inflation.

Inflation is the main reason interest rates are so high, so a lower CPI number could influence the Federal Reserve to act on rates sooner rather than later. Last month, the inflation rate declined to 3.4% from 3.5%, so another tick down would create some momentum toward the Fed’s target inflation rate of 2%.

On the other hand, rising inflation would almost certainly cause the Fed to delay any movement on rates until at least September, if not longer. Economists project the CPI will stay at 3.4%, but we’ll find out Wednesday morning.

On Wednesday afternoon at 2 p.m. Eastern, the FOMC is scheduled to conclude its two-day meeting and announce its decision on the federal funds rate. While it is almost a certainty that policymakers won’t lower interest rates, the inflation report could impact their timeline on easing.

Speaking of timelines, the Fed is also due to release its quarterly summary of projections, or dotplot, on Wednesday. The dotplot is the summation of FOMC members’ thoughts on a variety of economic issues, including the trajectory of interest rates over the next few years.

The last dotplot in March called for three rates cuts in 2024, although that seems highly unlikely now. It is more likely that the consensus will drop to two interest-rate cuts in 2024, but only one cut is not out of the question.

Broadcom and Apple

If there were a Magnificent Eight group of stocks, Broadcom (NASDAQ: AVGO) might be the eighth. The semiconductor company has been booming because of its AI-enabled chips that help power wireless and mobile networks.

Broadcom is considered one of the best AI stocks, with an average annualized return of 35% over the past five years. This year, it has gained 31% so far.

Broadcom is set to close out a wild Wednesday with its next quarterly earnings report, which could certainly move the markets after hours into Thursday — one way or the other, depending on the results.

The other big event this week is Apple’s (NASDAQ: AAPL) annual Worldwide Developers Conference (WWDC), scheduled to take place all week and end on June 14.

Monday could set the tone for the whole week as the keynote address scheduled for 10 a.m. Pacific/ 1 p.m. Eastern promises to reveal Apple’s latest platforms and technologies. The revelations could include details on the upcoming iOS 18, which is rumored to be one of the most significant iPhone updates ever.  

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