Market Watch: The S&P 500 futures contract increased by 11 points or 0.2%, Nasdaq 100 futures by 48 points or 0.3%, and Dow futures by 79 points or 0.2%.
Stock futures rose on Friday, indicating Wall Street’s gains. Markets await consumer mood data and inflation figures. Chinese electric car shares fell in Hong Kong due to US tariffs.
Consumer sentiment index
The University of Michigan’s consumer sentiment index for May is expected to be 76.0, down from 77.2 in April. This suggests a decline in consumer sentiment, but the index has not seen a significant change since January. The survey also released data on one-year inflation expectations, which increased to 3.2% in April from 2.9% in March..
Gold prices rose
Gold prices rose in European trade on Friday due to a softening US labor market and reports of fresh US trade tariffs on China. Bullion prices are set to break a losing streak, while spot gold rose 0.3% to $2,354.06 an ounce. Spot prices are set to add over 2% this week.
China’s electric vehicle (EV) stocks fell
Chinese electric vehicle (EV) stocks fell following reports of US tariffs on Chinese companies, specifically targeting EVs and other key sectors. Li Auto, Nio, and BYD fell between 1% and 4% in Hong Kong trade. Xiaomi and Contemporary Amperex Technology also fell. US President Joe Biden could announce new tariffs next week, extending levies imposed by former President Trump.
Economic Calendar
- 9:00 Fed’s Bowman Speech
- 10:00 Consumer Sentiment
- 10:00 Fed’s Logan Speech
- 10:00 Fed’s Kashkari Speech
- 12:45 PM Fed’s Goolsbee Speech
- 1:00 PM Baker-Hughes Rig Count
- 1:30 PM Fed’s Barr Speech
- 2:00 PM Treasury Statement
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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.