Good morning, traders!
The S&P 500 ($SPY) is trading near yesterday’s close. Let’s get into it…
Federal Reserve Chair Jerome Powell’s recent comments have underscored a cautious stance on reducing interest rates, citing the need for more evidence of inflation nearing the 2% target. This caution reflects a broader sentiment among central bankers about the persistence of inflation, suggesting that higher borrowing costs may persist for a longer duration. Consequently, the likelihood of a rate cut in March, previously considered almost certain, has significantly diminished, now standing at around 10%.
Corporate developments continue to influence market dynamics, with companies like UBS and BP making headlines for their financial results and share buyback plans, respectively. Meanwhile, regulatory attention in China aims to bolster market confidence through strategic investments, indicating a concerted effort to mitigate recent market downturns. As the global financial landscape navigates through these varied economic and corporate signals, investors remain watchful of the implications for future market trends and monetary policy directions.
In the news, Asian markets, particularly Chinese equities, have shown notable movements with shares soaring amid speculations of intensified government efforts to stabilize the market. Regulatory plans to brief President Xi Jinping suggest a proactive approach to addressing market volatility. In the U.S., technology stocks, including Palantir Technologies Inc., have witnessed significant premarket trading surges due to optimistic profit forecasts based on demand for artificial intelligence products. However, Citigroup strategists caution that the bullish positioning in U.S. tech stocks could exacerbate market fluctuations in the event of a selloff.
Tuesday Economic Events:
Redbook Sales 8:55am ET
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
Loretta Mester 12:00pm ET
Neel Kashkari 1:00pm ET
Susan Collins 2:00pm ET
Patrick Harker 7:00pm ET
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