(Bloomberg) — U.S. stock futures fall amid growing confidence that the Federal Reserve will continue to raise interest rates for an extended period of time to rein in a resilient economy, with some investors We are even starting to speculate that the next move will be up.
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S&P 500 and Nasdaq 100 futures were pointing to a lower day when Wall Street reopens after the holiday Monday. Nvidia fell in premarket trading ahead of its widely anticipated earnings report scheduled for Wednesday. Discover Financial Services soared after Capital One Financial Corp. agreed to buy the credit card issuer. Capital One fell. 10-year US Treasury yields and the dollar stabilized.
Traders have been pushing expectations for rate cuts in recent weeks from March to June, as Federal Reserve officials warned against too much expectations for policy easing and economic data continued to rise unexpectedly. It has been postponed until April. Former U.S. Treasury Secretary Lawrence Summers said Friday that the next move is “very likely.”
Investors will be on alert ahead of Wednesday's release of the Fed's January meeting minutes, but Nvidia will likely be the most watched. The semiconductor giant has surpassed Amazon.com Inc.'s market capitalization on hopes that it will be a big winner in the development of artificial intelligence. Together, Metaplatforms and Microsoft have contributed to nearly 60% of the S&P 500's year-to-date rally.
“Nvidia's results on Wednesday could be a turning point for the market,” Charles Henry Montchaux, Banc Sys' chief investment officer, said on Bloomberg TV. “There are very few large-cap growth stocks that the market relies on, and there is a risk of a pullback if they fail to meet expectations for any reason.”
The Stoxx Europe 600 index fell, on track to end a four-day streak of gains, leaving it within two points of its January 2022 all-time high on Monday. European government bonds rose, and German 10-year bond yields fell by about 4 basis points.
The Bloomberg Industrial Metals Index fell 0.7% as miners Anglo American and Rio Tinto led the decline in basic resources stocks as iron ore prices slumped. Sandoz Group fell more than 7% after Morgan Stanley downgraded the Swiss drugmaker's share price, citing short-term uncertainty.
The chemicals subsector outperformed, rising more than 4% after French gas producer Air Liquide beat analysts' expectations for profit growth. Barclays soared as much as 6% following the announcement of its capital return plan. Evolution AB rose nearly 5% after US regulators concluded an investigation into the Swedish online gambling company.
Elsewhere, Asian stocks fell after China's lower mortgage rates failed to ease concerns about the world's No. 1 mortgage lender. 2 Economy. Benchmarks for Japan, Australia and South Korea were all in the red. Chinese stocks rose and fell wildly.
Willer Chen, an analyst at Forsyth Barr Asia, said the five-year loan prime rate cut was “a good move by commercial banks, but the real estate issue is still not about mortgage rates.” Demand for real estate will increase, but we cannot expect much. ”
healthy demand
In Australia, BHP Group, the world's largest mining company, reported underlying profits of $6.57 billion, below consensus expectations, and despite a weak housing market, demand from top customer China He said it was healthy.
Elsewhere, gold was little changed after rising slightly on Monday to trade around $2,020 an ounce. West Texas Intermediate crude oil prices rose slightly due to continued tensions in the Red Sea, a key trade route.
Some of this week's main events:
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Rio Tinto Plc earnings, Wednesday
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Eurozone consumer confidence Wednesday
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Nvidia Corp Wednesday's earnings
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US Federal Reserve Board (FRB) January Meeting Minutes, Wednesday
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Atlanta Fed President Rafael Bostic speaks Wednesday
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Eurozone CPI, PMI, Thursday
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European Central Bank publishes report of January 25 meeting on Thursday
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Fed President Lisa Cook and Minneapolis Fed President Neel Kashkar speak on Thursday
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Chinese real estate prices Friday
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European Central Bank Board Member Isabel Schnabel speaks on Friday
The main movements in the market are:
stock
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As of 6:23 a.m. New York time, S&P 500 futures were down 0.4%.
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Nasdaq 100 futures fell 0.6%
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Dow Jones Industrial Average futures fell 0.4%.
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Stoxx European 600 fell 0.1%
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MSCI World Index little changed
currency
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Bloomberg Dollar Spot Index little changed
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The euro rose 0.2% to $1.0798.
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The British pound was almost unchanged at $1.2596.
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The Japanese yen remained almost unchanged at 150.20 yen to the dollar.
cryptocurrency
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Bitcoin rose 0.8% to $52,325.51
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Ether fell 1.2% to $2,933.7.
bond
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The 10-year government bond yield was almost unchanged at 4.28%.
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German 10-year bond yields fell 3 basis points to 2.38%.
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UK 10-year bond yields fell 6 basis points to 4.05%.
merchandise
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West Texas Intermediate crude oil fell 0.4% to $78.88 a barrel.
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Spot gold rose 0.4% to $2,025.89 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Richard Henderson and Michael Musica.
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