06:33 AM EDT, 06/24/2024 (MT Newswires) -- US investors will look to the Federal Reserve's preferred inflation measure and quarterly earnings from Micron Technology ( MU ) this week as investor sentiment will get a boost if the probability of an interest-rate cut in the near term increases and the pull of the artificial intelligence trade continues.

* The median estimate for Friday's core personal consumption expenditures is 0.1% for May, but it wouldn't take much to drive a weaker reading. After the core Consumer Price Index landed at 0.2% for May, core PCE could "cough up a donut this time - or at least a very soft gain," Derek Holt, head of capital market economics at Scotiabank, said in a note.

* Core PCE's much lower weight than CPI on shelter prices and its higher weight than CPI on core services inflation that tumbled could "drive a downside surprise," Holt said.

* If it is weak and if another soft print were to arrive for June, then it could "very well keep alive greater pricing" for a potential Fed cut on July 31 at the Federal Open Market Committee's rate-setting meeting or leave the FOMC more confident in terms of a loosening bias in their Sept. 18 meeting, Holt said.

* Other releases due this week include the Q1 GDP final estimate, Conference Board consumer confidence, and durable goods orders.

* Quarterly earnings due this week include FedEx ( FDX ) on Tuesday, Micron Technology ( MU ) on Wednesday, and Nike ( NKE ) on Thursday.

* Micron could lift the technology sector as the chipmaker's results will shed further light on demand from artificial intelligence. Last week, the peer group ended little changed after Nvidia (NVDA) began to give up gains following a blistering rally this month.

* The Fed will release its annual bank stress test results this week in which Fed Governor Christopher Waller, San Francisco Fed President Mary Daly, Fed Governor Michelle Bowman, and Richmond Fed President Thomas Barkin are on the speaking circuit.

* The first US presidential debate will be televised on Thursday.