Following an extended weekend due to the holiday, U.S. stock index futures increased slightly on Tuesday as investors anticipated a significant inflation data later in the week that may challenge the Federal Reserve's monetary policy stance.
Friday marked the conclusion of a successful week for the tech-heavy Nasdaq and the benchmark S&P 500, as investors revised their expectations about when the world's most powerful central bank may lower interest rates. This was the fifth consecutive week of advances for both indexes.
Throughout the year, expectations regarding the potential start date of the Fed's policy easing have fluctuated. Despite data showing an economy that is still robust, policymakers continue to downplay the necessity for immediate rate reduction.
According to the CME FedWatch Tool, traders anticipate a 51.2% possibility that the first rate decrease of at least 25 basis points might occur in September, up from a 49.4% probability on Friday.
After closing at a record high on Friday, the yield on U.S. Treasury notes, a gauge of rate expectations, slightly decreased and helped chip stocks, driven by a 2.5% increase in Nvidia, the AI favourite.
Beginning with Tuesday's trading, the "T+1" settlement cycle will be in place, and experts anticipate significant price volatility. The change will guarantee transaction settlement in one business day instead of two, lowering counterparty risk and enhancing market liquidity.
"Banks and the exchanges have been planning this for months, and this week we will see if the machine runs smoothly or if there will be some early missteps," said Kathleen Brooks, research director at XTB.
The S&P is expected to rise for a fifth straight week.
Markets will analyse the U.S. core Personal Consumption Expenditures Price Index report for April later this week, following data on Friday that indicated consumer attitude on inflation forecasts was improving. Every month, the Fed's favourite inflation gauge is anticipated to remain stable.
Additional information includes the Fed's Beige Book and the second estimate for the first-quarter GDP. Remarks from many central bankers are also expected during the week.
In an interview, Minneapolis Fed President Neel Kashkari stated that the US central bank ought to hold off on lowering interest rates and that, should inflation continue to climb, it may even consider raising rates.
Equities futures for the Dow were up 24 points, or 0.06%, those for the S&P 500 were up 15.75 points, or 0.30%, and those for the Nasdaq 100 were up 95.5 points, or 0.51%, at 5:40 a.m. ET.
UBS Global Research, the largest brokerage, increased its year-end objective for the benchmark S&P 500 index, which is now trading slightly below all-time highs, from 5,400 to 5,600.
Based on industry statistics, Reuters calculated that Apple outpaced megacaps, rising 2.4% after iPhone sales in China increased 52% in April compared to the same month last year.
Meme stock GameStop surged 20.5% on the retailer of video games' announcement late on Friday that it had generated $933 million through the sale of 45 million shares through a "at-the-market" offering.
(Source:www.aol.com)
Friday marked the conclusion of a successful week for the tech-heavy Nasdaq and the benchmark S&P 500, as investors revised their expectations about when the world's most powerful central bank may lower interest rates. This was the fifth consecutive week of advances for both indexes.
Throughout the year, expectations regarding the potential start date of the Fed's policy easing have fluctuated. Despite data showing an economy that is still robust, policymakers continue to downplay the necessity for immediate rate reduction.
According to the CME FedWatch Tool, traders anticipate a 51.2% possibility that the first rate decrease of at least 25 basis points might occur in September, up from a 49.4% probability on Friday.
After closing at a record high on Friday, the yield on U.S. Treasury notes, a gauge of rate expectations, slightly decreased and helped chip stocks, driven by a 2.5% increase in Nvidia, the AI favourite.
Beginning with Tuesday's trading, the "T+1" settlement cycle will be in place, and experts anticipate significant price volatility. The change will guarantee transaction settlement in one business day instead of two, lowering counterparty risk and enhancing market liquidity.
"Banks and the exchanges have been planning this for months, and this week we will see if the machine runs smoothly or if there will be some early missteps," said Kathleen Brooks, research director at XTB.
The S&P is expected to rise for a fifth straight week.
Markets will analyse the U.S. core Personal Consumption Expenditures Price Index report for April later this week, following data on Friday that indicated consumer attitude on inflation forecasts was improving. Every month, the Fed's favourite inflation gauge is anticipated to remain stable.
Additional information includes the Fed's Beige Book and the second estimate for the first-quarter GDP. Remarks from many central bankers are also expected during the week.
In an interview, Minneapolis Fed President Neel Kashkari stated that the US central bank ought to hold off on lowering interest rates and that, should inflation continue to climb, it may even consider raising rates.
Equities futures for the Dow were up 24 points, or 0.06%, those for the S&P 500 were up 15.75 points, or 0.30%, and those for the Nasdaq 100 were up 95.5 points, or 0.51%, at 5:40 a.m. ET.
UBS Global Research, the largest brokerage, increased its year-end objective for the benchmark S&P 500 index, which is now trading slightly below all-time highs, from 5,400 to 5,600.
Based on industry statistics, Reuters calculated that Apple outpaced megacaps, rising 2.4% after iPhone sales in China increased 52% in April compared to the same month last year.
Meme stock GameStop surged 20.5% on the retailer of video games' announcement late on Friday that it had generated $933 million through the sale of 45 million shares through a "at-the-market" offering.
(Source:www.aol.com)
