The U.S. market next week will focus on how Meta's earnings release affects views on excessive AI investment. Meanwhile, upside surprises in CPI and PPI, along with interest-rate movements, are likely to influence the direction of equities.
Meta's earnings release is scheduled for the 21st next week, and attention is focused on whether it can ease concerns over excessive AI investment. In addition, with earnings reports from numerous companies, including GM, Netflix, IBM, Tesla, Newmont and P&G, due from next week onward, the question will be whether buying interest shifts toward non-AI stocks when AI-related stocks come under pressure.
CPI and PPI released this week exceeded market expectations. PPI in particular rose 1.3% month on month, reaching its highest level since March 2021. Against this backdrop, the 10-year Treasury yield softened toward the latter part of the week, although concerns about future interest-rate movements remain.
The market is pointing to a growing possibility of an additional rate hike within the year even if the FOMC skips a rate hike, as Fed officials are about to enter their blackout period next week. Indicators related to the housing market are also due to be released, and the equity market is generally expected to remain in a highly event-driven phase.
Major earnings reports include GE Aerospace, GM, Halliburton, Netflix, IBM, Meta, NextEra Energy, Tesla and P&G on the 20th; BlackRock, Hewlett Packard Enterprise and Newmont on the 22nd; and American Express and SLB on the 23rd.