Market Watch: Dow futures contract increased by 42 points, S&P 500 futures rose 11 points, and Nasdaq 100 futures rose 66 points.
Fed Chair Jerome Powell testifies in Senate, futures show positive Wall Street start, President Biden vows to return, and Boeing faces spotlight after aircraft wheel injury.
Powell at Capitol Hill
Federal Reserve Chair Jerome Powell is set to testify at Capitol Hill, discussing the cooling of inflation and the impact of tight policy on the jobs market. He has emphasized the need for more data to ensure inflation moderates, but faces the challenge of balancing price pressures without overly impacting the US economy.
President Joe Biden
US President Joe Biden has vowed to remain in the presidential race, dismissing concerns about his mental fitness following a poor debate against Trump. In a letter to fellow Democrats, Biden stated he remains committed to running the race to the end and beating Trump. However, uncertainty remains as the House and Senate return to session, with Stifel predicting a 40% chance Biden will not seek reelection.
Boeing at spotlight
United Airlines lost a landing-gear wheel after takeoff from Los Angeles, resulting in a safe landing in Denver. The Federal Aviation Administration requires inspections of 2,600 Boeing 737 airplanes due to potential oxygen mask failure. Boeing recently pleaded guilty to a criminal fraud conspiracy charge.
Economic Calendar
- 06:00 AMÂ NFIB Small Business Optimism Index
- 09:15 AM Fed’s Barr Speech
- 10:00 AMÂ Jerome Powell Speech
- 01:00 PMÂ Results of $58B, 3-Year Note Auction
- 01:30 PMÂ Fed’s Bowman 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.