Market Watch: Dow futures contract gained 51 points, S&P 500 futures increased 8 points, and Nasdaq 100 futures entered the green by 22 points.
US stock futures rise amid Federal Reserve interest rate cuts projections, softer April employment data, and upcoming Fed speakers. Walt Disney and Wynn Resorts report quarterly earnings.
Fed officials speech ahead
Fed officials are set to speak on interest rates, with New York Fed President John Williams, Richmond Fed President Thomas Barkin, Minneapolis Fed President Neel Kashkari, Chicago Fed President Austan Goolsbee, and Fed Governor Michelle expected to make appearances. Despite acknowledging a lack of progress on inflation, Chair Jerome Powell believes borrowing costs are heading lower this year.
Earning season countinue
Walt Disney, Wynn Resorts, and Akamai Technologies are among the larger companies set to report in the upcoming earnings season, while small cap names like Bellring Brands, Light & Wonder, and Permian Resources Corp are also expected to report.
Chinese services activity
A private survey by Caixin PMI showed that China’s services sector slowed slightly in April, but remained steady, with new business activity increasing and export demand improving. The reading indicated resilience in the Chinese economy due to sustained stimulus and policy support from Beijing. External demand also improved.
Economic Calendar
- 8:30 Non-farm payrolls
- 9:45 PMI Composite Final
- 10:00 ISM Service Index
- 1:00 PM Baker-Hughes Rig Count
- 7:45 PM Fed’s Williams and Goolsbee Panel
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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.