US Futures Dip Ahead of Economic Updates; Dollar Rises
As Wall Street braces for crucial inflation data, traders navigated through a mix of economic indicators, all the while looking for hints from Federal Reserve officials on the future of interest rates. Equities experienced slight declines on Wednesday, following a report indicating that the US economy grew at a marginally slower pace in the last quarter of the previous year, with a decrease in inventory levels overshadowing an increase in consumer spending and investment. This data, deemed “uneventful” by many, precedes the anticipated inflation metric release by the Fed.
After significant rises in consumer and producer prices, the upcoming core personal consumption expenditures price index is expected to underline the challenging journey the Federal Reserve has towards its 2% inflation target, also reflecting the central bank’s hesitancy to lower rates. Federal Reserve speakers for Wednesday include Raphael Bostic from Atlanta, Susan Collins from Boston, and John Williams from New York.
The S&P 500 saw a drop to approximately 5,060, while the 10-year Treasury yields remained steady at 4.3%. Meanwhile, the dollar saw a slight increase, and Bitcoin surged to $60,000, marking a fifth day of gains in the crypto rally.
Corporate Updates:
- Apple Inc. ( $AAPL) is set to have its annual shareholder meeting with its stock hovering near a pivotal $180 mark.
- eBay Inc. ( $EBAY) delivered a robust holiday quarter, signaling potential profit growth after significant job reductions.
- Beyond Meat Inc. ( $BYND) exceeded fourth-quarter sales expectations with its plant-based protein offerings.
- Bumble Inc. ( $BMBL) announced a workforce reduction of about one-third following recent executive changes, aiming to rejuvenate user growth through app enhancements.
Royal Bank of Canada ( $RY) outperformed analyst predictions, with its capital-markets and wealth-management sectors compensating for higher loan-loss provisions and expenses.
