Several important data will be released this week: the May PCE price index, as well as personal income, personal consumption expenditures (PCE), and the personal savings rate.

With retail sales, which represent physical consumption by residents, remaining weak for two consecutive months, if service consumption in PCE also weakens, market trading will once again be caught in concerns about whether the economy is heading for a soft landing or a hard landing. If economic data further declines and the market becomes entirely short-term data-driven, trading may start to reflect expectations of a hard landing, which would not be good for tech stocks.

However, given that U.S. fiscal policy remains aggressive and spending is hard to rein in, Dolphin Research believes a hard landing is a low-probability event.