Market Watch: Dow futures contract increased by 0.6%, while S&P 500 futures rose by 0.9% and Nasdaq 100 futures by 1%.
Wall Street indices are expected to rebound on Tuesday following a slump, following Nikkei’s bounce and Google’s loss in an antitrust case in the U.S.
Google has been found to have violated antitrust law
Google has been found to have violated antitrust law, according to a US Federal Judge.
The judge concluded that Google had violated Section 2 of the Sherman Act by maintaining its monopoly in search services and text advertising through exclusive distribution agreements.
The ruling could lead to a second trial to determine potential solutions, possibly including Alphabet’s breakup.
Kamala Harris
Kamala Harris is set to unveil her vice presidential running mate, Pennsylvania Governor Josh Shapiro, and Minnesota Governor Tim Walz, her first major decision as the Democratic Party’s presidential candidate.
Harris became the standard bearer after President Biden ended his re-election campaign, and is expected to appear with her running mate in Philadelphia.
Nikkei rebounds
Asian stock markets rebounded on Tuesday, with Japan’s benchmark Nikkei 225 index leading the way. The Nikkei surged 10%, thanks to bargain buying, but remained in bear market territory.
Citi analysts predict a near-term recovery in Japanese markets, with risk-off trades dominating and defensive sectors recommended. A brief U.S. recession, global stimulus support, and a less hawkish tone from the BOJ are needed for a recovery.
Economic Calendar
- 7:45Â AMÂ ETÂ ICSCÂ Weekly Retail Sales
- 8:30Â AMÂ ETÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â International Trade for June
- 8:55Â AMÂ ETÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Johnson/Redbook Weekly Sales
- 1:00Â PMÂ ETÂ USÂ Treasury to sell $58B in 3-year notes
- 4:30Â PMÂ ETÂ APIÂ Weekly Inventory Data
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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.