Shares were little changed as Nvidia and AI’s rally showed signs of fatigue

The start of summer also brings relative calm next week, as investors emerge from record finishing highs for major indexes and the first signs of a slowdown in the dizzying tech-led rally.

Earnings season has also turned quiet, although Nike (NKE), Walgreens (WBA), FedEx (FDX), and General Mills (GIS) are among the major indexes scheduled to report next week.

However, there is an important economic indicator on the horizon. The Fed’s preferred measure of inflation, the personal consumption expenditures, or PCE, price index will be released on Friday.

The PCE reading follows another measure of inflation, the Consumer Price Index (CPI), which showed earlier this month that consumer price increases slowed during May. If Friday’s personal consumption expenditures reading also indicates an easing in price pressures, it will give the Federal Reserve another reason to cut interest rates in the coming months.

Market bets are currently anticipating that central bankers will cut interest rates starting in September. A positive PCE reading is likely to confirm these expectations, while a reading that showed stubborn inflation is likely to dampen expectations of a first interest rate cut.

The US presidential election campaign has also begun to take shape. Investors will get their first taste of presidential debates Thursday night, when Joe Biden and Donald Trump face off on CNN. How the candidates view tax policy, global trade, the role of the Federal Reserve and other economic issues will be top of mind for many viewers.

Yahoo Finance’s Brent Sanchez has a graphic breakdown of what to watch next week: