Market Watch: U.S. stock markets are scheduled to remain closed for the Juneteenth holiday on Wednesday.
U.S. financial markets close for Juneteenth holiday, potentially limiting trading activity after Nvidia surpasses Microsoft as world’s most valuable company. Federal Reserve Governor suggests slashing interest rates.
Nvidia at top
Nvidia’s stock price increased by over 3% to $135.58, raising its market cap to $3.34 trillion, surpassing Microsoft’s $3.31 trillion valuation. The California-based company, which designs processors for AI models like OpenAI’s ChatGPT, added over $110 billion to its market cap. Nvidia is seen as a key player in the AI revolution.
Kugler signals rate cut
Federal Reserve Governor Adriana Kugler has indicated that if economic conditions continue to move in the “right direction,” it will be appropriate to slash interest rates in 2024. Kugler believes that recent signs suggest that price increases are not being as frequently passed on to consumers, and that interest rates are at a “sufficiently restrictive” level to ease economic activity and cool inflation. Other Fed officials, including New York Fed President John Williams and Richmond Fed President Thomas Barkin, also expect gradual rate reductions.
Golden Goose IPO postponed
Italian high-end sportswear brand Golden Goose has postponed its planned IPO in Milan due to market conditions deteriorating following European elections and a French snap election. The IPO, aiming to raise 600 million euros, was due to be priced this week.
Economic Calendar
- 10:00Â Housing Market Index
- U.S. Markets closed
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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.