Key takeaways:

• US Congress will move to vote on a proposed US debt ceiling hike

• Australian inflation data for April will make or break' the case for an RBA rate hike 

• AI stocks may remain in focus following significant interest in the sector

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With the Nasdaq hitting a 13-month high, and positive developments regarding the US debt ceiling, the ASX is set to leap out of the gates when the opening bell rings this morning.

Economic Calendar and News

Investors will be breathing a sigh of relief following weekend negotiations between Democrats and Republicans leading to an in-principle agreement to raise the debt ceiling and avoid a US default.

Key aspects of the agreement include reductions in government spending and workplace reforms, with no new taxes or government programs included.

However, the deal still needs the backing of each party in the form of approval by both the House and the Senate. A number of politicians have indicated they remain staunchly opposed to some of the concessions. One positive is that the Treasury now believes the debt default deadline is not until June 5, buying Congress valuable time to manage procedural affairs. 

Staying with the US, and jobs data comes into focus later in the week when the latest employment report is published. The data is expected to show 180,000 jobs were added to the economy throughout May, albeit the unemployment rate may edge higher to 3.5%, and wages growth is believed to have cooled slightly to 4.3% year-over-year.

Consumer confidence is tipped to show signs of weakness when fresh data is released on Wednesday, US-time, while other influential readings come courtesy of home prices, job openings, and manufacturing activity.

Locally, the big-ticket item is the monthly CPI indicator, which will be published on Wednesday. There is a wide variance among analysts forecasts, but the consensus reading suggests April inflation will remain flat at 6.4%. A surprise result to the upside could harden the resolve of the RBA to tighten monetary policy, whereas a cooler' reading could afford borrowers some breathing space.

The week ahead also includes data for building approvals, due Tuesday, while a day later observers may scrutinise construction data and housing credit growth for better insights as to the revival of the property sector. 

On that note, CoreLogic data on dwelling prices is set to show another month of higher dwelling prices at a national level. Home prices likely grew by 1.4% month-over-month, which would represent the third consecutive month where national dwelling prices have increased.

Overseas, Eurozone inflation data is forecast to drop to 6.3% year-over-year, or 5.5% when core inflation is measured, while Chinese manufacturing and services activity could indicate further patchiness in the recovery of the world second largest economy. 

Stocks on watch

Lithium and graphite explorer Sayona Mining (ASX: SYA) will exit a trading halt this week, with the company capital raise set to boost its coffers. The business tapped the market for $200 million at a price of 18 cents per share, representing a 14.3% discount to the last closing price before trading was halted. 

Having recently produced its first lithium concentrate, Sayona is set to use the proceeds from the raise to aid its production efforts, including but not limited to feasibility studies at its Moblan project in Quebec, which the company believes is host to high-grade spodumene mineralisation.

Momentum is in full swing for mineral explorer WA1 Resources (ASX: WA1), which rocketed higher by 17.2% during Friday trading session. Although there was no catalyst behind last week rally, that action extended the company gains over the last 12 months to more than 2,600%. 

During that time, the company West Arunta niobium project has paved the way for its rapid ascent, with a number of high-grade drill hits recorded. The metal is used across a number of applications such as nuclear energy, lithium-ion batteries, solar panels, and 5G tech. Shareholders may also be positioning ahead of diamond drilling work, which kicks off in June.

Investors in Tyro Payments (ASX: TYR) will be hoping for a better week after the company share price was trashed as a second suitor walked away from a deal to acquire the firm. With Westpac having pulled its offer late last year, Potentia Capital Management has followed suit. Tyro share price fell 24.4% across the course of the week, leaving the stock at its lowest level since early September.

Perhaps the biggest story last week, and a likely talking point over the coming days will be semiconductor manufacturer Nvidia (NASDAQ: NVDA). Shares in the chip-maker leapt as much as 24% after the company delivered a strong earnings report, the highlight of which was guidance for the current quarter of US$11 billion in sales, versus consensus forecasts of US$7.2 billion. 

The company H100 processors, touted by its CEO as the world first computer [chip] designed for generative AI, have seen roaring demand. That has led to the company being on the verge of becoming a US$1 trillion behemoth, fuelled in no small part thanks to the current AI boom. 

Resurgent demand for microchips has also fuelled interest in other AI-oriented stocks, including semiconductor peers like Advanced Micro Devices (NASDAQ: AMD), Micron Technology (NASDAQ: MU), and Taiwan Semiconductor Manufacturing (NYSE: TSM), cloud networking businesses like Cloudflare (NYSE: NET) and Arista Networks (NYSE: ANET), as well as software names like Adobe (NASDAQ: ADBE) and Palantir (NYSE: PLTR).

And last but not least, the best performing constituent of the Dow Jones in 2023 is in the spotlight. Salesforce (NYSE: CRM) will disclose first-quarter earnings after the close of trade on Wednesday, US-time. Key reporting components of the software-as-a-service (SaaS) firm will likely include the contributions of its Tableau data visualisation program, where significant deals were signed during the quarter, the integration of Slack into its CRM platform, and guidance commentary around AI.