As we step into a new week, the financial landscape is set to be dominated by updates on the labor market, corporate earnings, and market trends. The May jobs report, set for release on Friday, will be a key focus, with economists predicting a similar narrative to last month’s report – a cooling labor market but not a complete slowdown.

The report is expected to show that 185,000 nonfarm payroll jobs were added to the US economy last month, with unemployment holding steady at 3.9%. This follows a moderately promising update on the inflation front, with the April reading of the Personal Consumption Expenditures (PCE) index showing prices increased 0.2% from the month prior, the lowest monthly increase of 2024.

In corporate news, quarterly results from CrowdStrike, Lululemon, and Dollar Tree will be in the spotlight. However, the mood in the market has been somewhat soured by less than impressive earnings from Dell, Salesforce, and MongoDB, which have all been part of the AI trade at times throughout the past year.

The stock market rally, which has been characterized by a broadening of sectors, has not been evident in the market’s latest climb to record highs. This lack of breadth is often bullish for the market, with stocks usually performing better than with any other breadth reading over the next three months, six months, and the full year.

As we navigate the week ahead, it’s crucial to keep an eye on these trends and updates. They will not only shape the financial landscape but also provide valuable insights for investors and market watchers.