Treasury yields increased on growing speculation that the US Federal Reserve may postpone cutting interest rates this year, while U.S. stock index futures were flat on Monday.
Stronger-than-expected manufacturing and jobs data, along with hawkish remarks from Fed members during the previous week, suggested that the U.S. economy is resilient, relieving pressure on the Fed to soon lower interest rates.
Cut In Interest Rates
On Friday, Wall Street’s primary indexes posted weekly losses as investors reduced their bets that the Fed would cut interest rates in June. According to the CME FedWatch Tool, there is currently a 48% possibility of the first rate decrease in June, compared to a starting point of roughly 58% last week.
Based on LSEG data, the market has also reduced its estimates for rate reduction this year from three to four a few weeks ago to less than three. Equities were under pressure as the yield on 10-year notes increased 4.45% to its highest level since November.
Later in the day, investors will be observing what remarks Chicago Fed President Austan Goolsbee and his Minneapolis colleague Neel Kashkari make.
The March consumer price inflation (CPI) report for the United States, which is anticipated later this week, will also be closely watched. It is predicted that headline inflation will increase to 3.4% year over year from 3.2% in February.
The minutes from the Federal Reserve’s most recent meeting, in which it maintained its forecast of three rate decreases this year, were also anticipated.
This week will see a pick-up in first-quarter earnings activity as major banks JPMorgan Chase & Co., Citigroup, and Wells Fargo & Co. are set to release their results towards the end of the week.
This week, Delta Air Lines and asset management BlackRock will both release their quarterly financial results. The S&P 500 e-mini was down 4.75 points, or 0.09%, the Nasdaq 100 e-mini was down 9.25 points, or 0.05%, and the Dow e-mini was down 19 points, or 0.05%, at 5:38 a.m. ET.
Increase In Inflation
Before the bell, Tesla had a 3.4% increase in trade after CEO Elon Musk announced that Robotaxi will be unveiled on August 8.
The minutes from the Federal Reserve’s most recent meeting, in which it maintained its forecast of three rate decreases this year, were also anticipated.
This week will see a pick-up in first-quarter earnings activity as major banks JPMorgan Chase & Co., Citigroup, and Wells Fargo & Co. are set to release their results towards the end of the week.
This week, Delta Air Lines and asset management BlackRock will both release their quarterly financial results. The S&P 500 e-mini was down 4.75 points, or 0.09%, the Nasdaq 100 e-mini was down 9.25 points, or 0.05%, and the Dow e-mini was down 19 points, or 0.05%, at 5:38 a.m. ET.
Before the bell, Tesla had a 3.4% increase in trade after CEO Elon Musk announced that Robotaxi will be unveiled on August 8.
