Market Watch: Dow futures contract fell 1.5%, S&P 500 futures dropped 2%, and Nasdaq 100 futures fell 3.2%.
Wall Street faces significant losses due to US economy slowdown concerns, Japan’s Nikkei index entering bear territory, and digital currency bitcoin slumping due to dwindling risk appetite.
Nikkei 225 index in Japan experienced a 13% drop
The Stoxx 600 index in Europe experienced a 2% drop, while the Nikkei 225 index in Japan experienced a 13% drop, its worst day since 1987.
The index has fallen over 20% since July 11, entering bear market territory. UBS’s Kelvin Tay warned investors not to use these losses to return to the Japanese market, as the market’s strength in the last two years is due to the weak Japanese yen.
Bitcoin’s price fell
Bitcoin’s price fell to a five-month low on Monday, 12%, due to growing concerns of a US economic slowdown. The drop, largely due to the launch of spot Bitcoin funds in March, has impacted broader crypto markets, which have been experiencing steep losses in equity markets. Coinglass revealed over $800 million has been liquidated from the crypto space in the last 24 hours.
Mars–Kellanova Deal
Mars is considering a potential acquisition of Kellanova, a smaller rival with a market capitalization of $27 billion. This could be one of the biggest deals in the food industry, but would likely face antitrust scrutiny due to their control of major brands in the packaged foods sector.
Economic Calendar
- 9:45Â PMI Composite Final
- 10:00Â ISM Service Index
- 5:00 PMÂ Fed’s Daly: U.S. Monetary Policy
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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.