Tech shares and Treasury yields are in focus today after yesterday's rebound in both. Higher yields could help sap the equity rally. Investors await tomorrow's Producer Price Index (PPI) amid little data of note today.
Inflation didn't show much sign of easing in February, the U.S. Consumer Price Index (CPI) report showed Tuesday. A rise of 0.4% for core CPI was above the 0.3% expected. Still, yields fell and stocks maintained earlier tech-driven premarket gains as investors welcomed a slight drop in annual core CPI.
Volatility is climbing and major indexes are losing ground this morning following Friday's reversal in Nvidia shares and as investors await CPI data tomorrow. Treasury yields remain lower, providing possible support, and the dollar is near two-month lows. Oracle reports later today.
February jobs growth of 275,000 was well above the average estimate of 200,000, but the government significantly cut growth from its prior two reports, making the combined impact more mild. Stocks rose on the data, and Treasury yields slid.
There's a lot on today's plate including an ECB decision to keep rates unchanged, more testimony from Fed Chairman Jerome Powell on Capitol Hill, and a rise in U.S. jobless claims. Broadcom and Costco earnings loom later and the February jobs report is tomorrow.
Fed Chairman Jerome Powell speaks before Congress today in his biannual testimony, and his prepared remarks said the Fed might need to dial back policy restraint but didn't hint at timing. Stocks are rebounding from yesterday's tech-driven sell-off as Treasury yields remain lower.
U.S. indexes are under pressure early Tuesday from mega caps Apple and Tesla, both of which face struggles in the Chinese market. Target earnings impressed investors, and February services data are awaited.
Today features a look at consumer sentiment and the U.S. manufacturing economy, along with five Federal Reserve speakers who may have views on yesterday's PCE inflation report. Tech stocks are mixed in the early going despite a big jump for Dell and yesterday's chip market strength.
PCE prices rose 0.3% while core PCE growth was 0.4% for the Fed's favored inflation metric. Stocks recovered from premarket losses on the news. Jobless claims jumped to 215,000, still historically low, and investors await key U.S. and Chinese manufacturing data later today and tomorrow.
Treasury yields fell after the government lowered its estimate of Q4 annualized gross domestic product to 3.2% from 3.3%. Stocks are lower, too, however, amid pressure from tech. Sideways trading is possible ahead of PCE inflation data tomorrow.
Major U.S. indexes rebounded in premarket trading from Monday's losses but could trade sideways ahead of Thursday's PCE inflation reading and earnings from Snowflake and Salesforce tomorrow.
Investors are buzzing this morning after weekend earnings from Warren Buffett's Berkshire Hathaway, and gear for a possible partial government shutdown. Inflation data Thursday looms large.
Major indexes flatlined early Friday after Thursday's parabolic rally sparked by Nvidia's monster earnings report. There's little in the way of data or earnings today, so investors might wait to hear from Warren Buffett, whose Berkshire Hathaway reports tomorrow. Next week features key inflation data.
Nvidia's parabolic rally continued early Thursday as the stock climbed 13% in premarket trading following an impressive earnings report. Tech shares in general climbed on Nvidia's coattails, but Treasury yields hit new highs after Fed minutes and another light jobless claims report.
The market is on edge this morning, with volatility powering higher, as investors wait for Nvidia to report after the close. Expectations are for a sharp move in either direction depending on the results, and tech shares continue to weigh on the overall market this morning. Fed minutes are due later, as well.
Mergers are in the mix early Tuesday as investors returned from the long weekend. Capital One (COF) said it plans to acquire Discover Financial Services (DFS) for $35.3 billion in a deal involving two of the biggest U.S. credit card companies, and Walmart is buying Vizio. Meanwhile, Walmart and Home Depot reported earnings and Fed minutes are tomorrow.
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