Fed Meeting
Dow futures contract was up 30 points, or 0.1%, the S&P 500 futures were up 3 points, or 0.1%, and the Nasdaq 100 futures were practically unchanged.
U.S. market futures are expected to close the week in a cautious fashion as investors await next week’s Federal Reserve policy-setting meeting. Adobe falls on disappointing outlook, while Bitcoin reverses some of its recent gains.
Adobe faces soft guidance for the current quarter.
Adobe Systems (NASDAQ:ADBE) shares fell more than 10% premarket after the software company issued softer-than-expected forecasts for the current quarter, adding to fears that increased competition is strangling growth.
According to LSEG statistics, Adobe expects second-quarter sales of $5.25 billion to $5.30 billion, which is lower than the estimated $5.31 billion figure.
Companies and people have moved their attention to cost-cutting amid rising interest rates and a challenging economy, putting pressure on growth at the Photoshop software producer, which has been investing in AI technologies to entice new customers.
The findings come ahead of the company’s investor day on March 26, when it is scheduled to introduce new products that may allay investor concerns about increased competition from OpenAI’s text-to-video generator, Sora.
Bitcoin falls in turbulent trade.
Bitcoin fell to a one-week low in tumultuous trading Friday, as investors took gains after rallying to a record high in the face of another upward surprise in US inflation.
By 05:00 ET, Bitcoin was trading 8.5% down at $67,133.00, a day after reaching a new high of $73,803.25, marking a new record for the fourth day running.
However, experts at JMP Securities feel that this is only a slight setback.
The financial business projected that Bitcoin’s price may rise to $280,000 during the next three years, owing to anticipated Bitcoin ETF inflows.
MicroStrategy Incorporated (NASDAQ:MSTR), the largest corporate investor in Bitcoin, has increased its holdings, contributing to the recent increases.
Earlier this month, filings with the US Securities and Exchange Commission disclosed that the supplier of corporate software solutions and services purchased 12,000 Bitcoin for $821.7 million, its second-largest buy since starting its cryptocurrency investments over four years ago.
This transaction was mostly funded by the issuance of convertible notes for $800 million, and JPMorgan believes that this posture increases danger to the current crypto market surge.
“We believe debt-funded bitcoin purchases by MicroStrategy add leverage and froth to the current crypto rally and raise the risk of more severe deleveraging in a potential downturn in the future,” according to analysts at JPMorgan Chase, in a note.
Putin poised for overwhelming win.
Russia goes to the polls Friday, with voters beginning to cast ballots in the March 15-17 election throughout the country’s 11 time zones, with just one conclusion expected: Vladimir Putin’s overwhelming reelection.
According to the Levada Center, the country’s most well-known pollster, Putin has an 86% popularity rating, with his campaign backed by state media and fashioned by a patriotic posture in light of the war in Ukraine.
The conflict has claimed the lives of many thousands of Russians, but the country’s war-focused economy expanded 3.6% last year and real salaries increased 7.8%, despite Western sanctions that have yet to sink it.
Meanwhile, German Chancellor Olaf Scholz will visit his French and Polish colleagues in Berlin later Friday in an effort to project support for Ukraine following weeks of tension between the allies.
Last month, French President Emmanuel Macron and Scholz disagreed on how to help Ukraine, and the dispute comes as US backing for Ukraine dwindles, showing a Western leadership vacuum.
Economic Calendar
8:30 Empire State Mfg Survey
8:30 Import/Export Prices
9:15 Industrial Production
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
Other Key Events:
- JP Morgan Gaming, Lodging, Restaurant and Leisure Forum, 3/14-3/15, in Las Vegas, NV
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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.