Market Watch
Dow futures were basically flat, S&P 500 futures climbed 20 points or 0.4%, and Nasdaq 100 futures fell 135 points or 0.8%.
The Federal Reserve meeting is the main event this week, but the Bank of Japan and Bank of England also set rates. While Nvidia conducts its newest developer conference, Apple and Google are apparently contemplating an AI partnership.
All Eyes on the Fed.
Central bank week is underway in major industrialized nations, with the focus on the Federal Reserve’s two-day policy-setting meeting on Tuesday. The US central bank is expected to keep rates unchanged, as Fed Chair Jerome Powell has stated that officials need more evidence of inflation slowing before they begin easing.
Traders are looking for more clues on the central bank’s outlook for rate cuts, the resilience of the US economy, and the possibility of an inflationary rebound. The Bank of Japan is set to decide whether to end eight years of negative interest rates, marking a shift away from its stimulus program.
The Bank of England is expected to stand pat on interest rates, waiting for clarity on wage growth. Markets are expecting the BoE to start cutting borrowing costs from 5.25% in August, following the Fed and the European Central Bank.
Apple Explores AI Collaboration with Google for Future iPhones
Apple is in talks with Google to incorporate AI features into its flagship iPhones. The two parties are in active negotiations to license Google’s Gemini artificial intelligence engine into the iPhone. The negotiations are still in early stages, and no agreement or branding has been decided.
Apple currently has a deal with Google, where Google’s search engine is the default search engine for Apple’s Safari web browser. Apple has lagged behind rivals Samsung Electronics and Google in incorporating AI features in its flagship offerings.
Nvidia Developer Conference.
Nvidia is set to hold its first in-person GTC developer conference, marking the first event after the COVID-19 pandemic. The company, which has been at the center of an AI-driven market rally, is expected to unveil its new flagship chips for AI development.
Nvidia’s market valuation has increased by $1 trillion, making it the top-performing stock in the S&P 500 Index. Investors are eagerly anticipating any AI-related announcements that could trigger fresh gains, as the stock has seen some volatility since its record high close on March 7.
Economic Calendar
10:00 Housing Market Index
Other Key Events:
- NVIDIA GTC 2024, 3/18-3/21
- Piper 24th Annual Energy Conference, 3/18-3/20, in Las Vegas
- Roth MKM 36th Annual ROTH Conference, 3/17-3/19, in Dana Point, CA
- S&P Global 39th Annual World Petrochemical Conference, 3/18-3/22, in Houston, TX
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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.