Tuesday saw trepidation in US market futures as some investors doubted the durability of a strong rise driven by anticipation of a Federal Reserve shift to rate reductions.
Amid ongoing worries about inflation and economic growth, strategists at Goldman Sachs Group Inc. stated that there is a danger of “disappointment in the near term” following Monday’s 22-month high for the Nasdaq 100 and a leap in the S&P 500 to their best closing since August.
“There are few upside catalysts, despite a more certain outlook regarding peak rates and potential cuts in 2024,” Liberum researcher Susana Cruz stated. “This earnings season, corporate guidance was rather slack; projections for the fourth quarter have dropped, and we’ll likely see more.
About a 30% probability of a Fed rate cut in March is factored in by the markets. Later today, the minutes of the most recent rate-setting meeting should be released, offering additional perspectives into the minds of decision-makers. Treasury rates were unchanged as the dollar continued its downward trend.
As demand for riskier assets increased due to the declining value of the dollar, emerging-market equities and currencies continued to rise. Technology companies drove the rise in MSCI’s index of developing-nation stocks to the greatest level in over three months, while the gauge for currencies reached a 22-month high.
As Beijing attempted to assist the beleaguered real estate industry, officials started compiling a list of 50 real estate companies that would be qualified for various forms of funding, which resulted in a gain for Chinese developers’ bonds as well as their shares.
Investors in OpenAI are still attempting to get co-founder Sam Altman back into a leadership position at the company that makes ChatGPT. Following the appointment of Altman and Greg Brockman to head its research team, Microsoft Corp. reached new heights. Zoom Video Communications Inc. had a late-day increase in US trading due to higher-than-expected revenues, while Nvidia Corp. is scheduled to release its quarterly results on Tuesday.
In other news, oil reversed a two-day rally that was fueled by expectations that OPEC+ would extend supply restrictions at a gathering this weekend.