Market Volatility Ahead: Key Events and Stocks to Watch

The week ahead is expected to be an eventful one, filled with several market-moving events that could shape the direction of the markets. The Federal Reserve's latest monetary policy meeting will be a key focus area, where investors will closely watch Fed Chair Jerome Powell's post-meeting press conference for any hints on when interest rate cuts might start.

Federal Reserve Meeting and Powell News Conference

The U.S. central bank is widely expected to leave interest rates unchanged on Wednesday, but the market will be closely watching for any changes in the Fed's stance. The new dot-plot quarterly projections for interest rates, unemployment, and inflation will also be closely watched by investors. Markets currently expect the Fed to wait until June to cut rates again, as per the Investing.com Fed Rate Monitor Tool.

Economic Calendar

Monday's U.S. retail sales report will be an important indicator of the health of the economy. The report is expected to show a modest increase in sales, but any surprise on either side could have significant implications for the markets. Elsewhere, corporate earnings reports from companies such as Nike (NYSE:NKE), FedEx (NYSE:FDX), Micron Technology (NASDAQ:MU), Lennar (NYSE:LEN), General Mills (NYSE:GIS), and Carnival (NYSE:CCL) will also be closely watched.

Stocks to Watch

Nvidia (NASDAQ:NVDA) is set to host its highly anticipated GPU Technology Conference (GTC), at which it is likely to show off its latest advancements in generative AI, accelerated computing, large language models, robotics, and more. The company's GTC conference has historically been a positive catalyst for the stock performance, with shares outpacing the Philadelphia Semiconductor Index in the week around GTC over the past five years.

Nvidia's GTC Conference

The four-day event will kick off Monday from the San Jose Convention Center in California and feature over 1,000 sessions, 2,000 speakers, and nearly 400 exhibitors. The company expects 25,000 in-person attendees, with 300,000 attending virtually. Most of the spotlight will fall on CEO Jensen Huang's keynote speech on Tuesday at 1:00PM EST, where he will share how Nvidia's accelerated computing platform is driving the next wave in AI, digital twins, cloud technologies, and sustainable computing.

Analysts' Expectations

Analysts anticipate that Nvidia will unveil its GB300 AI chip, which could start shipping in May. Furthermore, other key members of Nvidia’s leadership team are expected to reveal fresh details on the anticipated launch of the next-gen GPU, Rubin, in 2026. The consensus among analysts is overwhelmingly bullish, with most maintaining Buy or Overweight ratings. Analysts see 41.8% upside potential with a mean target of $172.50.

Stock to Sell: Nike

On the flip side, Nike is preparing to release its earnings report for the February-ended fiscal third quarter at 4:15PM ET on Thursday. Despite the arrival of a new CEO, Elliot Hill, in October aimed at spearheading a turnaround, things haven't looked up for the sportswear giant. Market participants expect a sizable swing in NKE shares following the print, with the options market pointing to a possible implied move of 9% in either direction.

Nike's Earnings Report

Analyst sentiment is overwhelmingly bearish with 23 downward revisions and no upward adjustments in the weeks preceding the report. Nike is expected to post an annual decline of 39% in adjusted earnings per share to $0.30, with revenue projected to decrease by 11% from the year-ago period to $11 billion. Looking ahead, it is my belief that Nike executives will disappoint investors in their full-year guidance and strike a cautious tone due to falling sales in North America as well as weak demand in China.

Conclusion

The week ahead is expected to be an eventful one, filled with several market-moving events that could shape the direction of the markets. The Federal Reserve's latest monetary policy meeting will be a key focus area, where investors will closely watch Fed Chair Jerome Powell's post-meeting press conference for any hints on when interest rate cuts might start. Nvidia's GTC conference is also expected to be a significant event, with the company likely to unveil its latest advancements in generative AI and accelerated computing.

Investors should keep a close eye on these events and consider adjusting their portfolios accordingly. Whether you're a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop. Subscribe now and instantly unlock access to several market-beating features, including ProPicks AI, InvestingPro Fair Value, Advanced Stock Screener, and Top Ideas.

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Disclosure

At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR(S&P) S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).

The views discussed in this article are solely the opinion of the author and should not be taken as investment advice. Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.

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