Market Watch: Stock futures predict a lower September trading start, with Kamala Harris reportedly blocking Nippon Steel’s proposed takeover of US Steel during Pennsylvania campaign stops. Tesla plans a six-seat Model Y vehicle in China.
Harris voices opposition to proposed U.S. Steel-Nippon Steel deal
Democratic presidential candidate Kamala Harris has pledged to block a proposed $14.9 billion takeover of U.S. Steel by Japan’s Nippon Steel. Harris called U.S. Steel a “historic American company” and argued it should remain American-owned and operated.
Republican rival Donald Trump has also pledged to block the deal. The United Steelworkers union opposes the deal.
Tesla plans to Model Y
Tesla plans to produce a six-seat Model Y vehicle in China by late 2025, as part of its strategy to refresh its best-selling electric vehicle and boost its appeal amid growing competition.
The Shanghai factory is awaiting approval for expansion. Tesla has already seen a 6% year-on-year rise in Model 3 deliveries in the first half of the year.
Brazil ban X
Brazil’s president, Luiz Inácio Lula da Silva, has backed the Supreme Court’s decision to ban Elon Musk’s X social media platform. The panel unanimously backed the ban, which was instituted by Supreme Court Justice Alexandre de Moraes, who deemed the platform uncompliance with hate-speech regulations. Musk criticized de Moraes as a “dictator” and warned that the ban could make Brazil uninvestable.
Economic Calendar
- 09:45 AM PMI Manufacturing Final
- 10:00 AM ISM Manufacturing Index
- 10:00 AM Construction Spending
- 11:00 AM Treasury Buyback Announcement
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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.