US futures drift higher as more earnings, economic cues loom By
2024-05-20 08:20:10

-- U.S. stock index futures rose slightly in evening deals on Sunday after a series of record highs on Wall Street, with sentiment remaining cautiously optimistic ahead of more cues on interest rates and earnings this week. 

rose 0.1% to 5,334.25 points, while rose 0.1% to 18,661.50 points by 19:23 ET (23:23 GMT). rose 0.1% to 40,179.0 points. 

More Fed cues, PMI data on tap this week 

Focus this week is squarely on more cues from the Federal Reserve on the path of interest rates, with the of the central bank’s late-April meeting due on Wednesday. 

The bank had kept rates steady and warned that it needed more confidence that inflation was coming down. But Fed Chair Jerome Powell had also said that rates were eventually expected to come down in 2024. 

Several Fed officials are also set to speak this week, with particular focus on the members of the Fed’s rate-setting committee. 

The Fed cues come amid increased focus on the bank’s plans to cut interest rates, especially after slightly softer inflation readings for April pushed up bets for a September rate cut. 

Beyond more cues on interest rates, markets were also awaiting data for May, which is set to offer more cues on U.S. business activity. Any signs of cooling could factor into the outlook for interest rate cuts.

Wall St loses momentum after record highs 

While Wall Street indexes made new highs last week, they were still seen running out of momentum amid uncertainty over just when the Fed could begin trimming rates.

Overheated valuations, particularly in the technology sector, and cooling hype over artificial intelligence also limited just how high indexes could push.

The rose 0.1% on Friday to 5,303.27 points, while the fell 0.1% to 16,685.97 points. The rose 0.3% to 40,003.59 points.

Nvidia Q1 earnings due this week 

Focus this week was also on quarterly earnings from AI darling NVIDIA Corporation (NASDAQ:), to see whether the firm could justify a massive increase in valuation over the past year. 

Nvidia is also expected to clock a substantial increase in earnings, with revenue expected at $24.8 billion from $7.2 billion last year, while earnings per share are expected at $5.57 from $1.09 last year, according to Reuters estimates. 

Nvidia’s earnings are also expected to likely determine the trajectory of other tech stocks, given their increasing exposure to AI. 

The content of this article does not represent the views of fxgecko website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Related News

您正在访问的是FxGecko网站。 FxGecko互联网及其移动端产品是中国香港特别行政区成立的Hitorank Co.,LIMITED旗下运营和管理的一款面向全球发行的企业资讯査询工具。

您的IP为 中国大陆地区,抱歉的通知您,不能为您提供查询服务,还请谅解。请遵守当地地法律。