Market Watch: Dow futures contract increased by 19 points or 0.1%, S&P 500 futures by 15 points or 0.3%, and Nasdaq 100 futures by 75 points or 0.4%.
Stock futures surge amid awaiting Federal Reserve’s inflation reading, which could support interest rate cuts in 2024. Nike shares decline amid sales decline, and President Biden’s debate with Trump falters.
PCE data
The PCE data indicates a decrease in US inflation in May, potentially boosting the Fed’s intention to implement rate cuts in 2024. The headline PCE is expected to slow to 0.0% monthly, while “core” PCE, which excludes volatile items, is predicted to ease to 0.1% monthly and 2.6% year-on-year.
Nike shares sink
Nike shares fell over 12% after the sports apparel company reported a 10% revenue drop in the current quarter. Sales in the ongoing fiscal year are also expected to decrease by a percentage in the mid-single digits. The guidance reflects aggressive management of classic footwear products, ongoing challenges in its digital business, and mutated wholesale order books.
Biden-Trump debate
US President Joe Biden struggled in a 90-minute debate with Republican challenger Donald Trump, stumbling through questions from moderators. Biden’s hoarse voice and long pauses overshadowed his attacks on Trump’s criminal conviction and failure to accept democratic norms. Trump criticized Biden’s record on the economy and foreign policy. Democrats are now concerned about Biden’s campaign success.
Economic Calendar
- 06:40Â Fed’s Barkin Speech
- 8:30 Personal Income and Outlays
- 9:45Â Chicago PMI
- 10:00Â Consumer Sentiment
- 12:00 PMÂ Fed’s Bowman Speech
- 12:40 PMÂ Fed’s Daly Speech
- 1:00 PMÂ Baker-Hughes Rig Count
- 3:00 PMÂ Farm Prices
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.