Market Watch:-Dow futures contract increased by 170 points, S&P 500 futures rose 35 points, and Nasdaq 100 futures rose 160 points.
Fed chief Powell calms Wall Street, futures positive, Apple results expected, revenue expected drop, and OECD’s global growth forecast lifted.
Powell’s Speech
Federal Reserve Chair Jerome Powell has ruled out interest rate hikes this year, despite the longer-than-expected inflation fight. He emphasized the need for data-dependent options and the first key data point, the U.S. employment report, on Friday. Powell’s strong pushback against rate hikes is expected to continue, with analysts predicting two rate cuts in July and November. The first key data point is expected to be the U.S. employment report.
Apple Revenue drops
Apple is set to release its results after Thursday’s close, with analysts expecting a 5% drop in total revenue in its fiscal second quarter. iPhone sales, which account for half of Apple’s revenue, are expected to fall 10.4% in the first three months of 2024, the steepest drop in over three years. The market will also be interested in Apple’s plans to integrate AI into iPhones.
OECD US growth Forecast
The OECD has revised its global growth forecast, predicting a 3.1% growth in 2024, with a slight increase to 3.2% next year. The US is expected to boost growth to 2.6%, while China’s economy is expected to grow faster due to fiscal stimulus, with growth forecasts at 4.9% in 2024 and 4.5% in 2025.
Economic Calendar
- Auto sales
- 7:30 Challenger Job-Cut Report
- 8:30 International Trade in Goods and Services
- 8:30 Initial Jobless Claims
- 8:30 Productivity and Costs
- 10:00 Factory Orders
- 10:30 EIA Natural Gas Inventory
- 4:30 PM Fed Balance Sheet
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MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.
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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.