Market Watch: Dow futures contract increased by 19 points or 0.1%, while S&P 500 futures rose by 4 points or 0.1%, and Nasdaq 100 futures advanced by 22 points or 0.1%.
Stock futures rise after Dow trades above 40,000, with Nvidia expected to report another quarter of revenue, and Fed officials set to speak on monetary policy.
Nvidia earnings this week
Nvidia is set to announce its earnings this week, focusing on its data center unit and predicting a 24% increase in revenues. The company faces competition from rivals like Intel and AMD, supply chain constraints, and geopolitical tensions. Major tech players like Alphabet and Amazon are also building their own AI chips, potentially limiting their need for Nvidia’s chips.
Fed officials Speeches, Minutes
Fed officials Christopher Waller, Philip Jefferson, and Michael Barr are set to deliver speeches on Monday, providing insights into the central bank’s moentary policy. The Fed is set to publish minutes from its April 30-May 1 meeting, which indicated higher rates due to inflationary pressures. Data suggests two 25-basis point cuts to borrowing costs this year.
PBOC maintained loan prime rates
The People’s Bank of China (PBOC) maintained its benchmark loan prime rate at 3.45% for one year and 3.95% for five years, despite other stimulus measures to support the economy. This stance was aimed at maintaining local monetary conditions as loose as possible.
Economic Calendar
- 3:30 PMÂ Jerome Powell Speech
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Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow, the benchmark  and tech-heavytouched record marks last week.
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow,
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
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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.