What to Know This Week: Inflation Data, Apple iPhone Launch, Global Markets Update

Inflation Data: Key Insight Before the Fed Meeting

This week, all eyes will be on the August Consumer Price Index (CPI) report, set for release on Wednesday. As inflation concerns persist, the CPI will provide the Federal Reserve a final look at inflation before its critical meeting on Sept. 17-18.

Last month, inflation rose by 2.9% on an annual basis. Analysts expect inflation trends to influence the Fed's decision on future interest rate cuts.

While the Federal Reserve is expected to begin reducing rates, the pace of those cuts could change based on the inflation data. Following the CPI release, Thursday will offer further insight into inflation trends with the Producer Price Index (PPI), which focuses on wholesale pricing. These two reports will help shape the Fed's upcoming rate policies.

Apple’s AI-Powered iPhone Unveiling

Apple (NASDAQ:AAPL) kicks off the week with its highly anticipated product launch event on Monday, where the company is expected to unveil its newest innovation—an AI-powered iPhone 16.

This upgrade will likely include enhanced artificial intelligence features, positioning Apple to lead in AI integration in consumer devices. New versions of the Apple Watch and AirPods are also expected to be revealed.

This event could boost Apple’s stock, as investors are always eager to see how new product announcements impact the company’s future. With AI being a key buzzword across industries, Apple's move could further solidify its standing in tech innovation.

Goldman Sachs Tech Conference

The Goldman Sachs (NYSE:GS) Communacopia & Technology Conference kicks off on Monday, featuring some of the biggest names in tech and finance. Notably, AMD’s CEO, Lisa Su, will be delivering opening remarks. This event will also see participation from Nvidia (NASDAQ:NVDA), Walmart (NYSE:WMT), and Cisco (NASDAQ:CSCO), all of whom are scheduled to speak over the week.

The conference will likely provide insights into future tech trends and give investors a clearer picture of where the technology sector is headed. With AI and other innovations dominating discussions, it’s a must-watch event for anyone interested in tech stocks.

This week's earnings >>

Global Economic Events: China, UK, and Europe

Looking beyond U.S. borders, this week brings several important economic reports from around the world.

China: China is set to release its inflation data on Monday. Consumer prices are expected to have risen just 0.5% year-over-year, while producer prices are forecast to have dropped by 0.5%. These figures will provide insight into China’s economic struggles, particularly its ongoing battle with deflationary pressures.

UK: The United Kingdom will release its unemployment rate for July on Tuesday, with the rate expected to stay at 4.2%. On Wednesday, the UK will also publish its GDP report for the three months ending in July. Growth is predicted to have slowed to 0.5%, down from 0.6% in the previous quarter. Manufacturing activity, which has been under strain, is expected to have fallen by 0.7% over the last 12 months.

Europe: On Thursday, the European Central Bank (ECB) is expected to announce a 0.25% rate cut, which would bring the main interest rate down to 4%. Additional cuts to deposit facility and marginal lending rates are also anticipated, as the ECB continues its efforts to combat inflation.

IPO Watch: Impact BioMedical and Kairos Pharma

Two companies are expected to launch their initial public offerings (IPOs) this week.

Impact BioMedical, a Texas-based biotech firm, is set to price its IPO, offering 2 million shares priced between $3 and $5. If priced at the midpoint, the company could raise around $8 million. Impact BioMedical focuses on healthcare technologies that are developed in partnership with external entities.

Kairos Pharma is also expected to begin trading after experiencing significant delays.