This week, investors are closely watching important economic indicators that can impact portfolios and the broader market outlook. Last week, the stock market gained momentum, with the Dow Jones Industrial Average climbing 3.41%, helping stocks overcome earlier losses from this year. However, the recent downgrade of the United States' credit rating by Moody's has raised new uncertainty, potentially slowing down the market's recovery. Investors will pay special attention this Thursday to May's preliminary S&P Global Manufacturing and Services PMI reports, which measure economic activity across manufacturing industries and service-oriented businesses. These reports provide early signals about economic health and consumer demand, helping investors make informed decisions about the future direction of the economy and markets.

As retirement investors face ongoing market uncertainty, experts stress the importance of careful planning and strategy. With recent sharp market changes, understanding economic indicators like the S&P Manufacturing and Services PMIs and Existing Home Sales data helps investors see where the economy might be headed. To prepare for financial stability in retirement, financial advisors suggest focusing on actual cash flow needed rather than reacting emotionally to sudden market swings. They also recommend having a widely diversified investment portfolio, which spreads risk across different types of assets and helps smooth out sharp changes in the market.