Market Watch: Wall Street stock futures lower amid US inflation data and presidential debate between Trump and Harris. GameStop shares slump after a decline in quarterly revenue, while GameStop shares announce new shares.
Kamala Harris Debate
Republican presidential candidate Donald Trump and Democratic rival Kamala Harris held a heated debate on key topics such as immigration and the economy. Trump has pledged to reduce corporate taxes and take a tougher stance on tariffs, while Harris has vowed to increase corporate taxes.
Analysts predict that Trump’s plan could boost company profits but may also fuel inflation. Meanwhile, GameStop’s stock price fell over a tenth of its value after the company announced plans to issue more shares despite declining second-quarter revenue.
GameStop plans to issue 20 million new shares
GameStop plans to issue 20 million new shares despite a decline in second-quarter revenue. The company plans to use the proceeds to fund general corporate purposes, including potential acquisitions and investments.
The company’s revenue fell from $1.16 billion to $798.3 million, reflecting increased online gaming purchases and sluggish store performance.
Chinese exports increased
Chinese biotech firms, including WuXi AppTec, Beigene, Akeso, and Sino Biopharmaceutical, regained ground after a sell-off triggered by a US House bill restricting their operations in America on national security grounds. The bill must pass through the Senate before being signed into law.
Economic Calendar
- 06:00 AM NFIB Small Business Optimism Index
- 01:00 PM Results of $58B, 3-Year Note Auction
- 02:00 PM Treasury Buyback Results
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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.