Market Watch: Â US futures drop amid downturn, with Nvidia’s share prices plummeting amid a US regulators’ subpoena for antitrust investigations
Harris voices opposition to proposed U.S. Steel-Nippon Steel deal
The US labor market is expected to see a decrease in available roles in July and June, according to the Job Openings and Labor Turnover Survey. This data will impact Fed Chair Jerome Powell’s shift from focusing on inflation to job losses.
Analysts predict a 25-basis point reduction in borrowing costs at the central bank’s upcoming meeting.
DoJ sends subpoena to Nvidia
The US Department of Justice has sent a subpoena to Nvidia as part of a probe into potential antitrust practices. Shares in Nvidia fell by over 3% in premarket US trading.
The DoJ is concerned that Nvidia is making it harder for customers to change suppliers and penalizing those not exclusively using its AI-optimized processors.
Nippon Steel vows US Steel will be managed by Americans
Nippon Steel has confirmed that the core senior management and majority board members at US Steel will be Americans if its planned $14.9 billion purchase of the US firm goes ahead.
The company will own US Steel, which has been in operation in America for over 50 years.
Economic Calendar
- 08:30 AMÂ International Trade in Goods and Services
- 10:00 AMÂ Factory Orders
- 10:00 AMÂ Job Openings and Labor Turnover Survey
- 11:00 AMÂ Treasury Buyback Announcement
- 02:00 PMÂ Fed’s Beige Book
- 02:00 PMÂ Treasury Buyback Results
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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.