Market Watch: S&P 500 futures contract increased by 0.5%, Nasdaq 100 futures by 0.8%, and Dow futures by 0.1%.
U.S. futures rise amid soaring returns from Nvidia, with revenue increasing 262% and expected to be further boosted by AI chip launches. OpenAI also signs content sharing deal with News Corp.
Nvidia’s Blowout Results
Nvidia’s first-quarter results soared by 262% to $26 billion, beating Wall Street estimates of $24.7 billion. The company expects the top-line figure to continue growing to $28 billion in the current quarter. Data center revenue, reflecting the performance of its AI chips, spiked by 427% to a record $22.6 billion. CEO Jensen Huang emphasized the importance of AI in bringing productivity gains and expanding revenue opportunities. The prospect of a sustained boom bolstered Nvidia’s Asian suppliers.
News Corp and OpenAI Deal
News Corp and OpenAI have signed a content sharing deal, granting OpenAI access to major publications like The Wall Street Journal, The Times, The New York Post, and Marketwatch. The deal, valued at over $250 million over five years, is part of OpenAI’s efforts to strengthen ties with major media outlets. However, OpenAI has faced scrutiny for unauthorized data usage.
Live Nation Entertainment issue
Live Nation Entertainment shares fell after reports emerged that the US Department of Justice plans to sue Ticketmaster over antitrust violations. The lawsuit could be filed in the Southern District of New York, focusing on multiple violations by Ticketmaster over its unrivaled hold on concert ticket sales.
Economic Calendar
- 8:30 Initial Jobless Claims
- 8:30 Chicago Fed National Activity Index
- 9:45 PMI Composite Flash
- 10:00 New Home Sales
- 10:30 EIA Natural Gas Inventory
- 11:00 Kansas City Fed Mfg Survey
- 3:00 PM Fed’s Bostic Speech
- 4:30 PM 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.