What happens within this Global Week Ahead?

• The public listing of SpaceX will take center stage, as it looks likely to become one of the top 10 most valuable U.S. listed firms after it goes public, while 
• A rate hike from the European Central Bank on Thursday seems nailed on

Elsewhere, 

• Mainland China releases a bunch of May macro data, and 
• The OPEC+ group meets, to decide its oil output quotas, against
• The backdrop of the Iran war

And the FIFA World Cup kicks off in Mexico on Thursday.

Next are Reuters’ five world market themes, re-ordered for equity traders—
 

(1) On June 12th, the Initial Public Offering (IPO) of Elon Musk’s SpaceX takes off.

Wall Street is bracing for the initial public offering of Elon Musk's rocket and satellite company SpaceX (SPCX) — a seismic market event that will likely be the first of several mega IPOs in the coming months.

SpaceX's Nasdaq debut — expected on June 12th — is looming as high-flying tech stocks have led a stunning rally for major U.S. equity indexes. The company plans to raise a record-setting $75 billion and aim for a valuation of $1.75 trillion.

The listing is expected to be followed by debuts from AI giants OpenAI and Anthropic, which on June 1st said it had confidentially filed for a U.S. IPO.

The monthly U.S. Consumer Price Index (CPI) will also be in focus, as investors grapple with inflation worries sparked by higher energy prices.

Oracle's (ORCL Quick QuoteORCL - Free Report) earnings report will keep the tech stock surge and the red-hot AI trade in the spotlight.
 

(2) The European Central Bank (ECB) is set to raise its policy rate.

The ECB is set to become the first among the biggest central banks to hike rates since the Iran war.

With the memory of 2022's energy crisis still fresh, Frankfurt is keen to not miss the boat this time.

Thursday's expected 25-basis-point rate hike is viewed as "insurance" — signaling the ECB won't let inflation get entrenched — rather than the start of a big hiking cycle.

It's not a post-pandemic economic boom like in 2022, so policymakers have a tightrope to walk as they try to hike without exacerbating the growth hit already underway from the crisis.

That's why markets reckon the ECB will only hike rates two or three times this year, with the next move most likely in September.
 

(3) On Thursday, the FIFA World Cup kicks off.

The 2026 FIFA World Cup kicks off on Thursday.

The world's biggest sporting event will be co-hosted in Mexico, Canada and the United States.

Roughly 5 billion people tuned in last time — with more teams and venues, expect an even bigger global binge.

It's a big revenue spinner for beverage companies such as Molson Coors (TAP Quick QuoteTAP - Free Report) , or Heineken (HEINY Quick QuoteHEINY - Free Report) , European ‌sports apparel producers like Adidas (ADDYY Quick QuoteADDYY - Free Report) , or U.S. tourism, like hotel operator Hilton (HLT Quick QuoteHLT - Free Report) , and airline operators like American Airlines (AAL Quick QuoteAAL - Free Report) , as fans travel, stock up on beer, and snap up merchandise.

The macro boost?

Less dazzling — growth tends to be short-lived and spending often just reshuffled, especially when split across three large economies.

And for the office sweepstake: Goldman Sachs' prediction model — based on Elo ratings devised for chess players — gives Spain the edge at 26%, followed by France, Argentina and Brazil.
 

(4) On Sunday, OPEC+ meets. Expect them to agree to a July output hike.

OPEC+ ministers are expected to agree a July output target hike on Sunday, sources said, as the group signals business as usual despite the Iran war.

Oil prices have been volatile as investors await progress in peace talks that could unlock the Strait of Hormuz. In May, prices fell more than 19%, mainly on hopes of a deal.

Seven core OPEC+ members have lifted quotas by nearly 600,000 barrels per day (bpd) from April to June. Yet actual output has slumped to 33.19 million bpd in April from 42.77 million in February.

July's quota is set to rise by about 188,000 bpd, in line with June. The International Energy Agency has warned global inventories could hit critical levels ahead of peak summer demand.
 

(5) Tuesday and Wednesday, China supplies risk markets with key macro data.

China's economy has its monthly health check in the coming week, with trade data for May due on Tuesday set to provide the latest update on how Asia's biggest economy coped with the third month of the Iran war.

On Wednesday, investors will get another read on price trends, including whether consumer price inflation will remain on the upward trajectory it has been in since October.

A gauge of producer prices will also draw attention, after turning positive in March for the first time in almost four years.

Lending data for May is also due for release during the week. April saw the weakest growth for two years in total social financing, the broadest gauge of credit to the Chinese economy.
 

Zacks #1 Rank (STRONG BUY) Stocks

Next are three Zacks #1 (STRONG BUY) large-cap stocks, benefitting from fresh covering analyst earnings upgrades.

(1) Axon Enterprise (AXON Quick QuoteAXON - Free Report) : This is a $513 a share aerospace & defense stock, with a market cap of $38.8B.

It is found in Zacks Aerospace – Defense Equipment industry. The stock holds a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of D.

F12M P/E: 59.5.
 

Image Source: Zacks Investment Research

Axon Enterprise engages in the development, manufacture and sale of conducted electrical weapons for the law enforcement, federal, military, corrections, private security and personal defense markets.

Its operating segments consists of TASER Weapons and Axon segments.

The TASER Weapons segment involves in the sale of conducted electrical weapons, accessories and other products and services.

The Axon segment focuses on devices, wearables, applications, cloud and mobile products.

Axon Enterprise formerly known as TASER International is headquartered in Scottsdale, Arizona.

(2) Kenvue (KVUE Quick QuoteKVUE - Free Report) : This is a $17 a share Consumer Staples stock, with a market cap of $33.3B.

It is found in the Zacks Consumer Products-Staples industry. The stock holds a Zacks Value score of C, a Zacks Growth score of D, and a Zacks Momentum score of B.

F12M P/E: 14.5.
 

Image Source: Zacks Investment Research

Kenvue is a pure-play consumer health company.

Its brand portfolio includes Aveeno, Band-Aid Brand Adhesive Bandages, Johnson’s, Listerene, Neutrogena, Tylenol, and Zyrtec.

Kenvue is based in Skillman, New Jersey.

(3) Northern Trust (NTRS Quick QuoteNTRS - Free Report) : This is a $173 a share U.S. bank stock, with a market cap of $31.2B. 

It is found in the Zacks Banks-Major Regional industry. The stock holds a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of C.

F12M P/E: 15.8.
 

Image Source: Zacks Investment Research

Northern Trust is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals.

Founded in Chicago, Northern Trust has offices in the United States and international locations in Canada, Europe, the Middle East and the Asia-Pacific region.

Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity, and innovation.
 

Key Global Macro

This week, the U.S. CPI and PPI data for May is likely a major stock trader focus.

On Monday, Mainland China exports for May come out. The prior reading was +9.8% y/y number, in USD terms. Imports come out too. The prior reading there was a stunning +25.3% y/y number, in USD terms.

On Tuesday, Mainland China’s CPI for May comes out. The consensus is for +1.3% y/y, following +1.2% y/y in the prior April reading.

Mainland China’s PPI for May looks to be up a stronger +3.9% y/y, rising from +2.8% y/y in the prior April reading.

On Wednesday, the U.S. CPI for May comes out. The CPI ex food & energy mark of May should be up +2.9% y/y, following a +2.8% y/y print in April.

The Bank of Canada (BoC) supplies a policy rate decision. The current policy rate is 2.25%.

On Thursday, the European Central Bank (ECB) likely raises its Rate on Deposit Facility policy rate to 2.25% from 2.00%.

The U.S. PPI data comes out for May. The prior April reading was a hot +5.2% y/y mark.

On Friday, the University of Michigan Consumer Sentiment index for June comes out. The prior reading was a very low 44.8.
 

Conclusion

On June 3rd, Zacks Research Director Sheraz Mian shared his Q2 earnings outlook.

Four key points:

(1) The overall S&P500 index earnings picture remains strong and broad-based.

We saw that in the last earnings season, when companies not only comfortably beat consensus estimates but also provided reassuring reads on the economy despite elevated energy costs and other risks.

We also saw positive momentum on the revisions front, with estimates for the current and upcoming quarters rising.

(2) Total Q2 earnings for the S&P500 index are currently expected to be up +21.2% from the same period last year, on +10.7% higher revenues.

11 of 16 Zacks sectors are expected to enjoy positive earnings growth.

(3) Q2-26 earnings estimates have been steadily going up since the quarter got underway, with the current +21.2% EPS growth up from +18% at the start of April.

Estimates have increased for 5 of the 16 Zacks sectors, including Tech, Energy, Basic Materials, Utilities, and Business Services.

(4) The S&P500 Tech sector has been a critical growth pillar, since Q3-23.

It is expected to continue playing that role in Q2-26, with earnings growth +42%.

Excluding the Tech sector’s substantial contribution?

Q2-26 earnings growth for the rest of the S&P 500 index would be +11.3% (versus +21.2% otherwise).

Enjoy the trading week.

John Blank, PhD.
Zacks Chief Equity Strategist and Economist