Market Watch: Dow futures contract experienced a 0.1% drop, while S&P 500 futures and Nasdaq 100 futures saw a 0.1% and 0.1% decrease respectively.
Stock futures lower amid Federal Reserve policy decisions and inflation data. Apple partners with OpenAI to enhance AI integration, while Scottish fund manager Baillie Gifford supports Tesla CEO Elon Musk’s $56 billion pay package.
Apple OpenAI Partnership
Apple has announced a partnership with OpenAI to integrate the ChatGPT chatbot into its products. The deal was revealed at Apple’s annual developers conference, as the tech giant seeks to improve its artificial intelligence capabilities. However, shares in Apple slid by 1.9% due to a lukewarm response from Wall Street, who had expected a more dazzling AI update.
Elon Musk’s $56 billion pay package
Tesla shareholder Baillie Gifford is set to vote in favor of Elon Musk’s $56 billion pay package, according to Bloomberg. Gifford supports the compensation plan due to its ambitious targets and alignment with stakeholder returns. Tesla’s shareholders are due to decide on the plan on June 13.
 Fed to cut rates just once in 2024
The Federal Reserve will cut interest rates once in 2024 due to high inflation, according to a FT-Chicago Booth poll. Over half of 39 academics predicted only one 25 basis-point cut, while nearly a quarter did not expect any rate reductions. The Federal Open Market Committee is set to reveal its latest “dot plot” on Wednesday, indicating a reduction in rate cuts.
Economic Calendar
- 1:00Â FOMC meeting begins
- 6:00Â NFIB Small Business Optimism Index
- 10:00Â Quarterly Services Survey
- 1:00 PMÂ Results of $39B, 10-Year Note Auction
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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.