Market Watch:- Dow futures fell 105 points, or 0.3%, S&P 500 futures fell 2 points, or 0.1%, and Nasdaq 100 futures increased 5 points, or 0.1%.
Wall Street is expected to trade lower on Tuesday due to reduced rate cuts in the first half of the year, Rubrik plans an IPO, and UBS announces a new share buyback program.
Strong US manufacturing activity data
The release of strong US manufacturing activity data has pushed back expectations of the Federal Reserve’s first interest rate cut this year, with a 61.3% odds of a rate cut in June.
This has benefited the US currency, with the dollar index trading just below the over 4-month high of 105.07. This strength is best illustrated against the Japanese yen, with the USD/JPY pair trading just below the 152 level that last prompted intervention in 2022.
Rubrik IPO
Rubrik plans to list its shares in the IPO market, following the recent debuts of Reddit and Astera Labs. The cybersecurity platform, which experienced a record IPO year in 2021, is set to follow the trend. Despite a 5% increase in revenue to $627.9 million in the fiscal year ending January, Rubrik’s net loss widened to $354.2 million.The company’s revenue in the fiscal year ended January rose about 5% to $627.9 million, but its net loss widened to $354.2 million from $277.7 million a year earlier. The company will trade on the New York Stock Exchange under the ticker symbol “RBRK.”
UBS buyback
UBS, a Swiss banking giant, has shown confidence in the future by announcing a new share buyback program of up to $2 billion. This follows the 2022 buyback, where UBS bought back 298.5 million shares for $5.2 billion. The move follows a previous buyback of nearly 1.2 billion Swiss francs ($1.32 billion) worth of its stock. Despite concerns over the accuracy of Credit Suisse’s financial reports, UBS remains in a relatively strong position.
Economic Calendar
Auto sales
10:00 Factory Orders
10:00 Job Openings and Labor Turnover Survey
10:10 Fed’s Bowman Speech
12:00 PM Fed’s Williams Speech
12:05 PM Fed’s Mester Speech
1:30 PM Fed’s Daly Speech
Must read book about investing – check hereMarket 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.