Market Watch:- Dow futures contract increased by 120 points, S&P 500 futures rose 17 points, and Nasdaq 100 futures rose 85 points.
Tesla reduces prices globally amid declining sales, Bitcoin surges after halving event, crude drops, and U.S. stocks open higher amid Big Tech sector earnings release.
Tesla price cut for china
Tesla has reduced prices in China and Germany, citing falling sales and an intensifying price war. The starting price of the Model 3 in China was reduced by just under $2,000, while prices in Germany, Europe, the Middle East, and Africa were also reduced. The price cuts come after Tesla reported a global vehicle delivery fall in the first quarter for the first time in nearly four years, leading to a workforce cut of over 10% and the elimination of at least 14,000 jobs. Tesla is set to report its first quarter earnings on Tuesday, with a sharp decline in operating profit and revenue. Tesla’s stock is now down over 40% so far this year.
Tech earnings
The quarterly earnings season shifts focus from the banking sector to big tech, testing the year’s U.S. stock rally. Four of the Magnificent Seven tech giants, Tesla, Meta, Microsoft, and Google, will report this week. Apple, Amazon, and Nvidia will report later. Analysts predict a 2.9% year-on-year aggregate S&P 500 earnings growth, with a significant portion expected from big tech powerhouses.
Bitcoin halving event
Bitcoin, the world’s largest cryptocurrency, edged higher on Monday, trading 1.6% higher at $66.237.0. However, significant gains in the wake of its halving event have been hard to find. Previous halvings occurred in 2012, 2016, and 2020, but Bitcoin only gained marginally, trading below the all-time high of $73,750.
Economic Calendar
- 8:30Â Chicago Fed National Activity Index
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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.