Last updated: 11:00 AM EST
Stock indexes have been mixed so far in today’s trading. Earlier today, Federal Reserve Chairman Jerome Powell spoke to the Senate Banking Committee about the cooling job market and the central bank’s efforts to combat inflation. Inflation remains above the Fed’s 2% target, but he said significant progress has been made toward reaching it. Powell also warned that cutting interest rates too little or too late could hurt economic activity and employment. As a result, he may be hinting that a rate cut is on the horizon.
It’s worth noting, however, that Chairman Powell did not say when the Fed might cut rates. That hasn’t stopped investors from speculating on when that might happen. In fact, signs of subsiding inflation and a slowing economy have investors betting on a rate cut as soon as the Fed’s September meeting, with the likelihood of that happening now standing at about 72%. CME FedWatch.
First Published: 4:27 AM EST
U.S. futures edged higher on Tuesday as broader indexes continued their momentum after the S&P 500 and Nasdaq Composite closed at record highs. Investors are betting the Federal Reserve will soon cut interest rates as inflation eases. Nasdaq 100 futures (Nedix), S&P 500 (Spocks), Dow Jones Industrial Average (DJIA) were up approximately 0.28%, 0.16%, and 0.04%, respectively, as of 3:28 a.m. ET on July 9.
On Monday, the Nasdaq 100 and S&P 500 hit new highs on hopes of artificial intelligence (AI) and future interest rate cuts. The Nasdaq 100 and S&P 500 are up about 21.5% and 17%, respectively, year to date. However, upcoming economic data and corporate earnings reports could influence market movements.
In after-hours trading, Zap Electric Vehicles (Zap) shares surged more than 24% after a massive 127% surge on Monday, reflecting the growing adoption of EVs.International Trade Commission)’s stock price is also continuing to rise, with Melius Research predicting the company’s growth in the second half of 2024. Meanwhile, Helios Technologies’ (HLIO) shares fell 8.33% after its CEO was placed on administrative leave for allegedly violating the company’s business and ethics policies.
Turning to economic reports this week, the June CPI report, which measures inflation and influences Fed policy, is due to be released on Thursday, July 11. The June Producer Price Index (PPI), a key inflation indicator, will be released on Friday, July 12. The Michigan Consumer Sentiment Index and the University of Michigan Five-Year Inflation Report will also be released on Friday.
In terms of revenue, Smart Global Holdings (SGH) is scheduled to release its third-quarter financial statements after the market closes today. Analysts expect Smart Global Holdings to post earnings of $0.30 per share, down from $0.66 in the same period last year.
Meanwhile, the yield on the 10-year US Treasury note has risen and is trading at around 4.29% at the time of writing. At the same time, WTI crude oil futures are trending lower, trading at around $85.69 per barrel at last check.
Meanwhile, in European markets, stock indexes opened lower as the results of the French election created uncertainty in the markets.
Asia Pacific markets rise today
Asia-Pacific stock indexes fell on Tuesday following gains on Wall Street. Japan’s Nikkei and Topix rose 1.96% and 0.97%, respectively.
Meanwhile, China’s Shanghai Composite Index and Shenzhen Composite Index rose 1.26% and 1.68%, respectively, while Hong Kong’s Hang Seng Index rose 0.09%.
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