Market Watch: Dow futures contract, S&P 500 futures, and Nasdaq 100 futures remained largely unchanged.
Wall Street is expected to start the week positively, but trading ranges may be tight due to key inflation data, Arm Holdings’ AI chip division, and rising Chinese consumer inflation.
 “Roaring Kitty” effect
GameStop shares surged by over 20% in after-hour trading due to a post from Keith Gill, a financial markets commentator and social media influencer. Gill, known as “Deep F***ing Value,” became a figurehead of a frenzy of trading in “meme stocks” like GameStop and AMC Entertainment in 2021. AMC and Koss Corp shares also rose sharply.
ChatGPT’s updated version
OpenAI has introduced ChatGPT, an updated version of its popular artificial intelligence model, GPT-4o. The model is more efficient at analyzing images, video, and text, and includes a voice assistant for easier use. This comes as Google is expected to unveil new AI features at its annual developer conference.
Foxconn Earnings
Foxconn, a Taiwanese electronics company, saw a 72% increase in Q1 profit to T$22.01 billion ($680 million), largely due to increased demand for server technology. However, the company still missed estimates of T$29.1 billion. The surge in profit was largely due to a lower base from last year, despite a decline in electronics demand.
Economic Calendar
- 6:00Â NFIB Small Business Optimism Index
- 8:30Â Producer Price Index
- 9:10 Fed’s Cook Speech
- 10:00Â Jerome Powell Speech
- 8:15 PMÂ Fed’s Schmid Speech
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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.