(Bloomberg) — Prior to the release of highly anticipated inflation data, US equity futures took a nosedive, potentially impacting the Federal Reserve’s decision on interest-rate cuts. Meanwhile, Treasuries experienced a rise.
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Contracts on the Nasdaq 100, which is sensitive to interest rates, dropped by 0.6%, and those on the S&P 500 fell by 0.4%, following Monday’s decline in the main US stock gauge from a high of nearly 5,050. Nvidia Corp. also saw a 1% drop in premarket trading.
The upcoming inflation report is expected to reveal the first reading below 3% on year-over-year headline inflation since March 2021. However, this may not be sufficient to warrant a quicker shift to monetary easing. Despite the rapid rate increases, employment, manufacturing, and economic growth in the US have all exceeded expectations.
“Despite expecting CPI to print below 3% later, we still think the market is over-exuberant when it comes to when that first cut comes in,” said Grace Peters, head of global investment strategy at JPMorgan…
2024-02-13 06:32:02
Article from finance.yahoo.com