US stock futures dropped on Tuesday, preparing investors for further losses as they regarded major retailers’ earnings as a potential window into consumer resilience in the face of uncertainty about the likelihood of a “soft landing.”
Company’s Positive Sales
A week shortened by holidays began with futures on the Dow Jones Industrial Average (^DJI) and the S&P 500 (\GSPC) down by about 0.3%. The tech-heavy Nasdaq 100 (<NDX) had a 0.4% decline in contracts as all three indexes ended the week negatively volatile.
As markets reopen following the Presidents’ Day holiday, investors are focused on earnings, with quarterly reports from two of the biggest US retailers, Walmart (WMT) and Home Depot (HD), scheduled to be released.Home Depot’s stock fell after it revealed that demand hasn’t increased despite “sticky” inflation, but Walmart’s stock increased as the company’s positive sales forecast and dividend hike lifted spirits.
There has been a retreat in bets on a spring interest-rate decrease as recent data has cast doubt on the notion that the economy is headed for a future in which inflation reaches the Federal Reserve’s 2% target without a significant setback.
Decline In Equities
The big news this week is Nvidia’s (NVDA) earnings, which are anticipated to be a pivotal moment for the markets. A decline in equities more generally is possible if there is a deficit despite optimistic expectations for the AI-focused chipmaker, which is the third-biggest business by market value. A small number of megacap stocks account for the majority of the gains.
Source: CNBC’s
In business news, Discover Financial Services (DFS) shares surged about 13% in premarket trade following word that Capital One (COF), backed by Warren Buffett, intends to acquire the credit card issuer for $35 billion, making it the sixth-largest US bank by assets.
In an attempt to stop a growing housing crisis, China’s central bank reduced its benchmark lending rate by a record amount, which further soured the mood.
