June S&P 500 E-Mini futures (ESM24) are up by 0.10% this morning, as market participants remain cautious ahead of the release of key U.S. consumer inflation data and the Federal Reserve’s March policy meeting minutes.
In yesterday’s trading session, Wall Street’s major indices closed mixed. Moderna (MRNA) was the top gainer on the S&P 500 and Nasdaq 100, surging over 6% after announcing positive results from a Phase 1 study of its neoantigen candidate mRNA-4157 combined with Merck’s Keytruda for treating head and neck cancer. Chip stocks also performed well, with ON Semiconductor (ON) and Analog Devices (ADI) rising over 3%. Cisco Systems (CSCO) led gains on the Dow, climbing over 3% after Morgan Stanley resumed coverage with an Overweight rating and a $58 price target. On the downside, Nvidia (NVDA) fell about 2% following Intel’s introduction of a new artificial intelligence chip, Gaudi 3.
“Valuations are stretched right now, making the market vulnerable to economic data or geopolitical uncertainties. Despite changing expectations for Fed rate cuts, the market has remained strong this year,” said David Bahnsen of the Bahnsen Group.
Investors are awaiting the Federal Reserve’s meeting minutes, hoping for insights into interest rate trajectories and the Fed’s balance sheet. Later today, all eyes will be on the U.S. consumer inflation report, with economists forecasting March CPI at +0.3% month-on-month and +3.4% year-on-year, slightly higher than the previous figures.
U.S. Crude Oil Inventories data is also due today, with economists expecting a decrease from last week’s value. Chicago Fed President Austan Goolsbee’s speech will be closely watched.
U.S. rate futures indicate a low probability of a rate cut in May but a stronger chance in June.
Delta Air Lines (DAL) is set to report Q1 earnings today.
In bond markets, U.S. 10-year rates are at 4.357%, slightly down.
Euro Stoxx 50 futures are up by 0.81%, driven by gains in technology stocks following positive reports from Taiwan chipmaker TSMC. Investors are focused on U.S. inflation data and the European Central Bank’s upcoming meeting.
In Asia, stock markets closed lower, with China’s Shanghai Composite Index down by 0.70% and Japan’s Nikkei 225 down by 0.48%. Fitch’s downgrade of China’s credit outlook and ongoing corporate news impacted market sentiment.
Japanese producer prices rose by 0.8% year-on-year in March, the highest since October 2023, potentially influencing the Bank of Japan’s inflation forecast.
In pre-market trading, PriceSmart (PSMT) rose over 4% after reporting strong Q2 results and announcing a special dividend. Aehr Test Systems (AEHR) declined by over 3% due to weaker-than-expected Q3 revenue. Monday.com (MNDY) fell over 1% after a downgrade, while Visteon (VC) and Albemarle (ALB) gained following upgrades from analysts.
Credits: barchart.com