Market Watch: Dow futures contract fell 60 points, S&P 500 futures dropped 4 points, and Nasdaq 100 futures rose 10 points.
Microsoft regains world’s most valuable company title after Nvidia’s stock retreats, Wall Street expects calm open, and Boeing nears regaining Spirit AeroSystems control.
Microsoft takes the lead
Microsoft has regained its title as the world’s most valuable company after Nvidia’s shares declined over 3%. Nvidia lost over $100 billion, registering a closing market value of $3.21 trillion. Microsoft’s market value also slipped to $3.31 trillion. Nvidia, Microsoft, and Apple are in a three-horse race to become the world’s most valuable company. Nvidia’s stock nearly tripled so far this year, and its revenues are expected to double this fiscal year.
Boeing Deal
Boeing is nearing a deal to repurchase Spirit Aerosystems, its former subsidiary. The deal was initiated in 2005 but faced challenges due to Spirit’s work for Airbus. Progress has been made in dividing Spirit’s programs between Boeing and Airbus, with the aim of stabilizing a critical supply chain for Boeing’s best-selling jet.
British public debt soars
The UK general election is near, and Keir Starmer’s Labour Party is ahead of Prime Minister Rishi Sunak’s Conservatives. However, British public debt reached its highest since 1961, reaching 99.8% of GDP. The rise was triggered by the COVID-19 pandemic and slow growth. Both parties have pledged to maintain existing budget rules and avoid raising income tax rates.
Economic Calendar
- 9:45Â PMI Composite Flash
- 10:00Â Existing Home Sales
- 10:00Â Leading Indicators
- 10:30Â EIA Natural Gas Inventory
- 1:00 PMÂ Baker-Hughes Rig Count
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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.