Market Watch:- Dow futures contract increased by 0.2%, S&P 500 futures gained by 0.2%, and Nasdaq 100 futures by 0.3%.
Fed interest rate decision
The Fed’s latest rate announcement is expected on Wednesday, with markets not expecting changes in borrowing costs from a high range of 5.25% to 5.50%. Fed Chair Jerome Powell’s comments on inflation’s cooling are expected to be crucial. Officials are cautious about slashing rates too soon due to elevated prices, labor market resilience, and strong US economy activity. Analysts warn of a slower and longer-term approach to neutral interest rates.
Amazon and Apple earnings
Amazon and Apple are set to announce their weekly earnings, with investors keen to see if their cost-cutting efforts are boosting profits. Apple will unveil their earnings after the close on Thursday, with traders focusing on faltering iPhone shipments and the Services division’s ability to offset this weakness. Analysts expect artificial intelligence to be a significant focus for both companies.
Tesla Baidu JV
Tesla has partnered with Baidu to roll out its advanced full self-driving (FSD) features in China, using Baidu’s mapping and navigation functions. The deal aims to clear a regulatory hurdle in China, allowing Tesla to potentially offer FSD technology in the country, following Baidu’s announcement that its vehicles will integrate Baidu maps next month.
Economic Calendar
- 10:30 AM ETÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Dallas Fed Manufacturing for April
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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.