Market Watch: US stock futures are influenced by upcoming inflation data, Federal Reserve monetary policy outlook, Apple’s AI-enhanced iPhone unveiling, and Oracle’s first-quarter earnings.
Apple has unveiled its latest iPhone 16
Apple has unveiled its latest iPhone 16 with AI-enhanced features, including Siri voice assistant improvements and smart camera customizations for professional video editing.
Analysts believe these features align with expectations set by Apple’s earlier announcement of “Apple Intelligence.” However, some analysts warn that the features may be released gradually, potentially deterring immediate buyers amid competition from Samsung and Huawei.
Oracle’s earnings
Oracle’s shares rose after better-than-expected fiscal first-quarter results, driven by strong demand for its cloud business. The company signed a partnership with Amazon Web Services, allowing customers to access Oracle Autonomous Database and Oracle Exadata Database Service within AWS.
The company reported a 53% increase in total remaining performance obligation to $99 billion, and projected revenue growth of 8% to 10% for Q2, surpassing analysts’ estimates.
Chinese exports increased
Chinese exports increased by 8.7% in August, surpassing expectations and accelerating from a 7% rise in July. However, imports expanded by 0.5%, indicating sluggish domestic demand.
This suggests firms are preparing for potential foreign tariffs, with analysts predicting strong exports in the coming months due to increased barriers against Chinese goods.
Economic Calendar
- 06:00 AMÂ NFIB Small Business Optimism Index
- 01:00 PMÂ Results of $58B, 3-Year Note Auction
- 02:00 PMÂ Treasury Buyback Results
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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.