Market futures suggested a less robust start on Wall Street as investors get ready for a barrage of economic data that may influence the direction of monetary policy.
Revenue Prediction
The tech-heavy Nasdaq 100 saw a 0.4% decline in contracts. The stock of Nvidia Corp., which has driven a rise among chipmakers in the fervor surrounding artificial intelligence, fell as much as 2.1% in premarket trading.
Futures for the S&P 500 fell 0.3%. As investors processed the most recent earnings, the Stoxx 600 index in Europe continued to decline. Following the semiconductor equipment manufacturer’s dismal revenue prediction, ASM International NV saw a decline.
Aside from profits, the US GDP, inflation, and speaker lineup from central banks are all highly anticipated. The Federal Reserve and European Central Bank are expected to cut interest rates, but investor expectations are eroding.
According to Guy Miller, chief market strategist at Zurich Insurance Co., “markets priced sizeable rate cuts in 2024, but what’s happened is we have had slightly problematic inflation prints in most parts of the world.” “The US economy has performed better than many had anticipated, the labor market is still tight, and wage growth has exceeded central bankers’ comfort levels.”
Decrease In Treasury Rates
Source: CNBC’s
As suggested by Fed policymakers in December, traders are pricing only 75 basis points of US easing by year-end. This is the most likely scenario. Treasury rates decreased on Wednesday, but the dollar index increased to its highest level since February 20.
Stocks related to cryptocurrencies rose as Bitcoin continued to rise for a fifth day, putting it on course for its largest monthly gain since October 2021. A spike in purchases has been sparked by the US spot Bitcoin exchange-traded fund launch in early January, dispelling worries about slower Fed rate cuts. On Wednesday, Bitcoin crossed $59,000, up nearly 40% for the month.
