Market Watch: Stock futures on Wall Street lower ahead of labor market report, potentially influencing Federal Reserve interest rate cut. Broadcom’s sales outlook underwhelms analysts’ expectations.
Crucial nonfarm payrolls
The Labor Department’s Bureau of Labor Statistics’ August nonfarm payrolls report is expected to reveal a 164,000-job increase in the US economy, a significant increase from the previous month.
This data could influence the Federal Reserve’s approach to interest rate cuts, with a 59% chance of reducing borrowing costs by 25 basis points. However, a downbeat payrolls figure could exacerbate job concerns.
Broadcom weak sales outlook
Broadcom’s Q4 sales guidance underwhelmed investors’ expectations, with the company predicting $14 billion in revenue, just under analysts’ expectations.
Broadcom’s broadband unit experienced a 49% drop in revenue, affecting demand for AI-optimized chips. The company raised its AI revenue outlook to $12 billion for the fiscal year.
Seven & i Holdings rejected bid
Seven & i Holdings has rejected a $38.5 billion cash bid from Canada’s Alimentation Couche Tard, arguing it was not in the best interest of its shareholders.
The $14.86 per share cash proposal, the largest-ever foreign buyout of a Japanese firm, was “opportunistically timed” and likely to face antitrust hurdles in the US.
Economic Calendar
- 08:30 AMÂ Employment Situation
- 08:45 AMÂ Fed’s Williams Speech
- 11:00 AMÂ Fed’s Waller Speech
- 01:00 PMÂ Baker Hughes Rig Count
Must read book about investing – check here Market Watch Market Watch Market Watch
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.
arket Watch MMarket Watcharket Watch
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.
arket WatchMarket WatchMarket WatchMarket Watch Market Watch Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting
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.