What to Expect in Markets This Week: The May Jobs Report, Plus Tech and Retailer Earnings

Investor focus will shift from Wall Street to Main Street over the course of the week, with quarterly results from a few big names in tech and retail landing ahead of a key labor market update.

May jobs numbers are slated to arrive Friday, capping off a confusing period for labor economists.1 Employers hired vastly more than expected in April and May, but experts are divided on what to make of the data. Some economists believe the labor market is rallying after a sluggish 2025. Others say the growth reflects surging demand for health care workers, brought on by an aging population, rather than economic expansion. They're also unsure if recent data has captured how war with Iran is altering the economy.

Unemployment remains low by historic standards. But job hunting is requiring more endurance than it once did. A quarter of unemployed people have been looking for work for more than a year, according to one recent survey.

Analysts wonder whether jobs numbers and other economic indicators will move markets more under new Fed Chair Kevin Warsh. Warsh, who is slated to preside over his first Fed policy committee meeting in mid-June, believes the Fed shares too much information about its approach, and then becomes beholden to the public's expectations.2 If investors hear less about inflation and interest rates from the Fed, they may rely more on alternative indicators for clues, analysts said.

Investors have some notable earnings reports to parse before the jobs report. Dollar General and Five Below are among those set to publish results this week, which may shed light on how lower-income households are handling inflation.345 A number of tech companies are also slated to report, including Palo Alto Networks, CrowdStrike, and Broadcom.678

The major stock indexes finished a month of gains at record highs, buoyed by enthusiasm for tech stocks and softer-than-expected inflation data. Oil prices fell, with the continuous contract for West Texas Intermediate futures ending the week down about 9%, as the U.S. and Iran continued to negotiate an end to the war. For more, read the Friday market recap here.

Here's a look at major events on tap throughout the week. TradingView publishes a more detailed calendar, but clicking the link will take you off the Investopedia site.

Airline earnings could double in the year ahead as carriers limit how many flights they operate, Colin Laidley reports. The price difference between new and used cars has started to widen and more closely resemble pre-pandemic norms, Diccon Hyatt writes. A wave of IPOs could curtail demand for shares of incumbent companies, particularly if they’re pushed out of benchmark indexes, Crystal Kim reports.

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