Market Watch: Dow futures contract increased by 0.5%, S&P 500 futures rose by 0.7%, and Nasdaq 100 futures by 0.9%.
Wall Street is expected to end a challenging week on a positive note, with the release of the Federal Reserve’s inflation gauge potentially affecting sentiment.
Federal Reserve’s inflation gauge
The Federal Reserve’s inflation gauge is set to test market expectations of interest rate cuts in September. June’s PCE price index is expected to have risen 0.1%, close to the Fed’s 2% target. The core PCE inflation report is expected to show a 0.2% m/m increase in prices.
Apple Sales drop
Apple’s smartphone shipments in China fell by 6.7% in Q2 2024, dropping from 10.4 million units to 9.7 million units. The decline is due to intensifying competition and local suppliers incorporating generative AI into their products.
Apple’s market share decreased to 14%, dropping from third to sixth place in the Chinese smartphone market.
Mercedes-Benz’s earnings
Mercedes-Benz’s stock fell after it narrowed its profit margin forecast, causing weakness in Europe’s automotive sector.
Stellantis reported a net profit fall, while Capgemini’s revenue forecast fell due to North American market weakness.
EssilorLuxottica’s financial performance was strong, while Hermes’ sales rose, indicating continued demand for expensive handbags. The quarterly earnings season continues in Europe.
Economic Calendar
- 08:30 AMÂ Personal Income and Outlays
- 10:00 AMÂ Consumer Sentiment
- 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.