Market Watch: US stock futures rose following tech rally, with OpenAI in talks to raise $150 billion. Boeing employees in Pacific Northwest likely reject labor deal and support work stoppage.
Nvidia Skyrockets
Global semiconductor groups rose following Nvidia’s 8.2% stock price surge, with suppliers like SK Hynix, Hon Hai Precision Industry, Advantest Corp., Tokyo Electron Ltd., and Renesas Electronics moving higher in Asian trading. European semiconductor groups also saw green deals in early dealmaking.
OpenAI is in talks to raise funds at a $150 billion valuation
OpenAI is in talks to raise funds at a $150 billion valuation, potentially solidifying its status as an AI stalwart and a valuable startup. The company is considering raising $6.5 billion in equity financing and is in talks with banks over a $5 billion credit line. Venture capital firm Thrive Capital is leading the funding round.
Boeing Faces Union Vote
Boeing workers in the US Pacific Northwest may face a strike if they reject a tentative labor deal, which included a 25% pay increase, a commitment to build a new plane, better retirement benefits, and increased union input into jet quality.
The International Association of Machinists District 751 is expected to reject the deal. A strike could exacerbate scrutiny on new CEO Kelly Ortberg, who is attempting to improve Boeing’s finances and reputation. Oil prices rose in European trade due to supply disruptions following Hurricane Francine.
Economic Calendar
- 08:30 AMÂ Jobless Claims
- 08:30 AMÂ PPI-Final Demand
- 10:30 AMÂ EIA Natural Gas Report
- 01:00 PMÂ Results of $22B, 30-Year Bond Auction
- 02:00 PMÂ Treasury Statement
- 02:00 PMÂ Treasury Buyback Results
- 04:30 PMÂ Fed Balance Sheet
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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.