Five things to watch for in the markets in May, from Google’s lawsuit to ECB data

May is set to be an exciting month for the markets, with plenty of events that will move markets in ways both predictable and unforeseen. Here are our top five pocks of what to look out for in May:

30th April to 1st May: Federal Reserve interest rate decision

On May 1, the world will hear the latest interest rate decision from the Fed of the United States.

When (and if) interest rate cuts happen has been a key narrative determining the way in which markets will go during 2024 so far, and May looks set to be no different.

But most analysts have predicted yet another month of no change in rates from the Fed, which will likely have their own consequences, as Americans watch their hopes of several rate cuts this year dwindle and recede as the months go on.

1st to 3rd May: Google’s antitrust case

The ongoing antitrust case against Google has been scheduled to be settled between 1 and 3 of May.

In the historic trial, the mighty search engine superpower has been brought before America’s Department of Justice on charges that Google is, essentially, using its prominence in the tech market to unfairly shut down potential competition from peers.

The things Google stands accused have the potential to change the current landscape profoundly, from how the tech industry innovates and how powerful mega-cap Magnificent Seven stocks can get, to what default settings mobile device makers are allowed to put on their phones. Definitely one to watch.

17th May: Latest inflation data from the ECB

Another interesting date to keep in mind, where interest rates are concerned, is the 17. Signs have increasingly pointed towards Europe – not the US – being the first major economy to cut interest rates.

This may even come as soon as June 2024 – an important month for the ECB, which is holding its next elections then. No doubt a crucial piece of evidence, if this is to be the case, will be the readings on inflation for April, the last data set of HICP which will come out before June.

22nd May: Nvidia earnings

After markets close on the 22, the most magnificently performing Magnificent Seven stock of 2024 will take to the stage to report its Q1 earnings.

This will be one to watch for sure, because Nvidia is generally considered to be the ultimate bellwether stock for investors’ enthusiasm for all things AI.

Not to mention that it also significantly affects the price of mighty index the S&P 500 (Nvidia alone is responsible for almost a third of the index’s market cap this year so far) and this will no doubt have a ripple effect on many markets, whether for good or ill.

29th May: South Africa holds elections

The 2024 year has been dubbed the ‘year of elections’ with good reason: more countries are going to the polls in these twelve months than we have seen in decades.

This month is South Africa’s turn, with voters turning out at the end of the month. It’s not just any election, either – forecasters have predicted that this may actually be the year when leading political party the African National Congress – which has been in power since the legendary end of Apartheid in 1994 – may finally be ousted from majority power after decades of unrest.

Such a significant change in the landscape of power for arguably the continent’ most influential economy is sure to cause massive ripple effects – not only to the ZAR, but potentially to the BRICS alliances and arguably emerging nations everywhere.

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