Market Watch: Dow Jones Futures contract fell 40 points, S&P 500 Futures dropped 9 points, and Nasdaq 100 Futures fell 22 points.
Fed chief Powell’s comments suggest interest rate cuts in September, with retail sales data and bank earnings confirming a slowing economy. Bitcoin gains amid Trump presidential victory.
Trump selects Vance as running mate
Donald Trump was officially nominated for the 2024 presidential race at the Republican National Convention in Milwaukee, amidst an assassination attempt.
He announced Senator J.D. Vance as his running mate. The convention will culminate with Trump’s prime-time address on Thursday.
Bank earnings
The banking sector will be a focus on Tuesday, with Bank of America, Morgan Stanley, and Charles Schwab reporting quarterly earnings.
Goldman Sachs reported a profit double in Q2, but earnings fell from a strong first quarter.
Stock investors are expected to focus on Q2’s earnings reporting season, with a bull market broadening as investors discount cuts in the federal funds rate.
Bitcoin rose
Bitcoin price rose 0.3% to $63,115 on Tuesday, boosted by the prospect of friendlier US crypto regulations if Donald Trump wins a second term in the 2024 presidential race. Speculation over Trump and a failed assassination attempt on Trump helped the token rise, despite concerns over selling pressure from Mt Gox and Trump’s support for the crypto industry.
Economic Calendar
- 08:30 AM Retail Sales
- 08:30 AM Import and Export Prices
- 10:00 AM Business Inventories
- 10:00 AM Housing Market Index
- 02:45 PM Fed’s Kugler 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.