Markets brace for volatile week as inflation and GDP data loom

Financial markets are gearing up for a busy week of economic data releases. Thursday will see key reports on new home sales, personal income, and inflation figures for April. Investors are also watching for updates on a potential U.S.-Iran agreement after recent peace rumours boosted stock values by $400 billion.

Trading begins with crypto markets open on Monday, despite U.S. equity and bond markets closing for Memorial Day. Bitcoin hovered near $76,700, rising 2% in the last 24 hours but falling by the same margin over the past week. Ethereum traded around $2,100, reflecting mixed sentiment in digital assets.

Holiday trading often leads to sharper price swings due to lower liquidity. Later in the week, the second estimate of Q1 2026 GDP and corporate profits will be published alongside April’s personal income and spending data. The PCE inflation report, a key measure for the Federal Reserve, is also due on Thursday. New home sales figures for April will round out the economic updates. Analysts are closely monitoring these releases for signs of shifting economic momentum.

The week’s data could influence market direction as traders assess inflation trends and growth signals. With U.S. markets reopening after the holiday, volatility may rise as investors react to fresh economic indicators. Thursday’s reports will provide clearer insight into consumer spending, housing, and broader economic health.