Market Watch: Dow futures contract remained unchanged, while S&P 500 futures increased by 0.1%, and Nasdaq 100 futures decreased by 0.1%.
US futures face challenges ahead of Nvidia earnings and Federal Reserve policy comments. Palo Alto Networks shares drop after billings forecast fails, while Samsung Electronics shakes semiconductor division leadership.
Palo Alto Networks’ forecast
Palo Alto Networks’ fourth-quarter billings forecast received a tepid response from some analysts, as the firm faces weakness in spending due to an uncertain economic environment. Customers are also investing in multiple vendors due to potential risks. Palo Alto estimates fourth-quarter billings will be between $3.43 billion and $3.48 billion, but analysts cited the guidance as “lackluster.” Other earnings reports include Lowe’s Companies and AutoZone.
Fed officials Speeches
Federal Reserve Governor Christopher Waller is set to deliver public comments on the outlook for the US economy. His colleagues have expressed cautiousness, suggesting that interest rates should remain at 5.25% to 5.5% until more evidence of price pressures abating. The Fed’s next policy meeting is scheduled for June 11-12.
Samsung Electronics taps new head for chip unit
Samsung Electronics has appointed memory chip veteran Young Hyun Jun as the new head of its semiconductor division, aiming to strengthen the segment’s competitiveness amid an uncertain global business environment. The move comes as Samsung is trailing SK Hynix in developing high bandwidth memory (HBM) chips for artificial intelligence.
Economic Calendar
- 9:00Â Fed’s Barkin Speech
- 9:00Â Fed’s Waller Speech
- 9:05Â Fed’s Williams Speech
- 9:10Â Fed’s Bostic Speech
- 11:45 Fed’s Barr Speech
- 7:00 PMÂ Fed’s Bostic Speech
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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.