Economic Alert
Dow futures rose 18 points, S&P 500 futures 15 points, and Nasdaq 100 futures 92 points.
Markets expect U.S. inflation data that might influence the Federal Reserve’s interest rate decreases this year. Futures rise before data. After an AI-driven earnings beat, Oracle (NYSE:ORCL) shares rise in extended hours trading, while Bitcoin remains around a record high.
U.S. inflation data
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.
Oracle earnings
Oracle shares surged nearly 14% in extended hours trading after stronger-than-expected quarterly earnings, driven by increased demand for its AI offerings. Profit per-share excluding items jumped 16% to $1.41, surpassing Bloomberg consensus estimates, while adjusted revenue was in line with expectations.
Oracle plans to announce a joint announcement with Nvidia this week, which produces AI-optimized chips for its cloud service customers. The enthusiasm over AI has led to stock gains in other tech giants, with Nvidia rising 2.0%, while Microsoft and Alphabet both added 0.6%. The enthusiasm over AI has influenced Oracle’s gains in recent months.
Bitcoin boom
Bitcoin remains below record highs in European trade, supported by steady inflows into spot exchange-traded funds approved by U.S. regulators earlier this year. The world’s largest cryptocurrency traded up 0.8% at $71,707.1, paring gains in Asian dealmaking but still close to an all-time peak of $72,771 hit on Monday.
Bitcoin’s recent increase is a continuation of a rally triggered by the January approval of spot ETFs, which attracted significant institutional capital. Additionally, MicroStrategy, the largest corporate Bitcoin holder, purchased 12,000 tokens using debt.
Economic Calendar
6:00 NFIB Small Business Optimism Index
8:30 Consumer Price Index
1:00 PM Results of $39B, 10-Year Note Auction
2:00 PM Treasury Statement.
Other Key Events:
- Barclay’s Global Healthcare Conference, 3/12-3/14, in Miami, FL
- Deutsche Bank 32nd Annual Media, Internet & Telecom Conference, 3/11-3/13, in Palm Beach, FL
- Deutsche Bank Shipping Summit, 3/12 (virtual)
- JP Morgan Industrials Conference, 3/11-3/14, in New York
- Loop Capital Annual Investor Conference, 3/11-3/12, in New York
- Oppenheimer 34th Annual Healthcare MedTech & Services Conference, 3/12-3/13
- UBS Technology, Media & Internet Conference, 3/12-3/13, in London
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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.