Tuesday's Final Thoughts: AMZN Lawsuit, Oil Moves & All Eyes on Powell

Core Insights - Micron reported earnings that exceeded expectations on both the top and bottom lines, along with better-than-expected guidance [2] - Federal Reserve Chair Jerome Powell expressed concerns about a softening labor market, indicating a stagflationary environment, and suggested that equities may be overvalued [2][3] - Amazon is engaged in a legal battle against the FTC over allegations of misleading practices related to its Prime membership [3][4] Economic Indicators - The Russell 2000 index reached a fresh high, suggesting a potential reacceleration of economic growth in the U.S. that could benefit small-cap stocks [6] - U.S. flash PMI data indicated continued expansion but was weaker than expected, with slower hiring and tariffs contributing to higher costs and limited pricing power [6] - A busy week of economic data is anticipated, including PCE, consumer sentiment, jobless claims, new and existing home sales, and GDP numbers, which will provide insights into consumer behavior and inflation [7][8] Federal Reserve Outlook - The Federal Reserve is experiencing divisions among its members regarding future monetary policy, with upcoming speeches from Fed officials expected to clarify their positions [9][10] - Mary Daly's remarks on the U.S. economy will be closely watched, particularly her views on inflation and the labor market [10][11] - Mortgage applications surged by 29.7% week-over-week, driven by refinancing activity as the 30-year fixed mortgage rate declined to 6.39% [12][13]