Beware: Zacks does not solicitate customers to join social media groups. Any solicitation to join a WhatsApp group from someone claiming to be from Zacks or one of its employees is a scam.

Do you expect the Fed's outlook to change this week?

This week's main event: the Federal Reserve. The Fed's two-day FOMC meeting concludes Wednesday and marks the first meeting led by new Fed Chair Kevin Warsh. Investors will be watching for: • Interest rate guidance • Updated economic projections (SEP) • Inflation outlook • Potential timing of future rate cuts

Latest data: • Consumer Sentiment Index: 48.9 vs. 44.8 prior • Expected: 46.0 • 1-Year Inflation Expectations: 4.6% vs. 4.8% prior The data suggests consumers are feeling slightly more optimistic while inflation expectations eased modestly.

Bear of the Day: $RH Tariff pressures, supply chain challenges, and a sluggish housing market continue to weigh on the luxury home furnishings retailer. RH currently carries a Zacks Rank #5 (Strong Sell).

Bull of the Day: $CAT The industrial giant is benefiting from AI-driven power demand, a record $63 billion backlog, and growing adoption of autonomous mining technology. CAT currently holds a Zacks Rank #1 (Strong Buy).

Are you…?

SpaceX $SPCX made history in its public market debut. Key IPO highlights: • Opened at $150/share • Reached a high of $176.52 • Closed at $160.95 ( 19.2%) • Valuation exceeded $2 trillion The largest IPO in history also made Elon Musk the world's first trillionaire. Today marks SpaceX's second trading day, with investors closely watching whether momentum continues.

While volatility has picked up, pullbacks are a normal part of every bull market. Historically, pullbacks occur several times per year and have typically been short-lived.

Latest PPI report: • Headline PPI: 1.1% m/m • Annual PPI: 6.5% y/y • Core PPI: 0.4% m/m • Core PPI: 4.9% y/y Core PPI eased from last month, but inflation remains elevated.

Bull of the Day: Five Below $FIVE • Strong growth, raised guidance, and a Zacks Rank #1 (Strong Buy) following a quarter that saw revenue climb 32% and EPS jump 160%. Bear of the Day: Builders FirstSource $BLDR • Shares are down nearly 30% in 2026 amid earnings misses, margin pressure, and a Zacks Rank #5 (Strong Sell).

What concerns you most right now?

Inflation remains in focus. Latest CPI report: • Headline CPI: 0.5% m/m (in line with expectations) • Headline CPI: 4.2% y/y (vs. 3.8% prior) • Core CPI: 0.2% m/m • Core CPI: 2.9% y/y (vs. 2.8% prior)

As SpaceX prepares for what could become the largest IPO in history, investors are betting that the AI boom still has room to run. “There’s just tons of money going into this,” said @ethanfeller430, stock strategist at Zacks Investment Research. “What would ultimately make the market potentially go down is this liquidity stopping to flow into these things.” Massive AI investment is fueling record valuations, but long-term success will ultimately depend on profitability and sustained capital flows. Reporting by @jruwitch via @NPR. npr.org/2026/06/11/nx-s1-585…

SpaceX isn't the only story. The IPO is drawing attention to the broader space economy, a sector seeing increased investment, new public companies, and growing interest from both institutional and retail investors. Could space become the next major investment theme?

Will you be following the SpaceX IPO?

SpaceX is expected to debut Friday in what could become the largest IPO in history, with reports pointing to up to $75B raised and estimated valuation between $1.75T and 2T. Investor interest extends beyond SpaceX itself, with many watching how Elon Musk's ecosystem of companies could evolve in the years ahead.

Housing data came in stronger than expected. Existing Home Sales: • 4.17M annualized units • 4.08M expected • 4.04M previous Meanwhile, the NFIB Small Business Optimism Index came in at 95.3, slightly below expectations. Attention now shifts to inflation data.

The May jobs report key numbers: • 172,000 jobs added vs. 85,000 expected • Unemployment rate: 4.3% (unchanged) • Private-sector jobs: 120,000 • Manufacturing jobs: 7,000 March and April payrolls were also revised higher by a combined 93,000 jobs. The report suggests the labor market remains resilient despite ongoing economic uncertainty.

All eyes are on inflation this week. Upcoming reports: • CPI on Wednesday • PPI on Thursday Inflation has been ticking higher, and stronger job gains have pushed out the expected timeline for the next rate cut. These will be the final inflation reports before next week’s FOMC announcement on 6/17.

Top Stock Pick: Western Digital $WDC Key highlights: • Fiscal Q4 revenue is projected to grow 40% year over year • Debt reduced by $3.1B, ending with a $450M net cash position • Multi-year customer agreements extend through 2028-2029 • Fiscal 2027 earnings estimates have increased 23.3% As AI infrastructure expands, data storage remains a critical piece of the ecosystem, and Western Digital is positioned to benefit.