Stock market today: Stocks little changed as Nvidia, AI rally shows signs of fatigue

The start of summer also brings a relative lull next week, as investors are coming off record finishes for major indexes and the first signs of a slowdown in the staggering tech-led rally.

Earnings season has gone quiet, too, although Nike (NKE), Walgreens (WBA), FedEx (FDX), and General Mills (GIS), are among the major tickers set to report next week.

A significant economic indicator is on the horizon however. The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, or PCE, will be released on Friday.

The PCE reading follows another inflation metric, the Consumer Price Index (CPI), which earlier this month showed consumer price increases cooled during the month of May. If Friday’s PCE reading also indicates a cooling of price pressures, it will give the Federal Reserve another reason to cut interest rates in the months ahead.

Market bets currently predict central bankers to lower rates starting in September. A favorable PCE reading would likely confirm that forecast, while a reading that showed stubborn inflation would probably push back expectations of the first rate cut.

The US presidential campaign is also coming into view. Investors will get their first taste of the presidential debates on Thursday night, when Joe Biden and Donald Trump face off on CNN. How the candidates view tax policy, global trade, the role of the Federal Reserve and other economic issues will be top of mind for many viewers.

Yahoo Finance’s Brent Sanchez has a graphical breakdown of what to watch next week: