Please check back for updates throughout the trading day.
U.S. stock futures fell again on Friday, while the dollar tested multi-month highs against global peers, as investors looked ahead to the start of the first-quarter earnings season while tracking changes in rate forecasts. interest rate of the Federal Reserve.
stocks ended higher on Thursday as markets recouped the previous week's losses following a subdued factory inflation reading, which along with CPI inflation numbers feeds into the Federal Reserve's preferred PCE price index.
Traders are still betting that the Federal Reserve will unveil its first rate cut later this year, probably in September, but have reduced bets on the total number of cuts to just two, down from six in early January. since inflation levels remain firm. above the Federal Reserve's 2% target.
Boston Federal Reserve President Susan Collins, speaking at an event hosted by the Economic Club of New York, said rate cuts are still part of her base projections for this year. But she noted that “recent data suggest that it may take longer than she had previously thought to gain greater confidence in inflation's downward trajectory before beginning to ease policy.”
Kansas City Fed President Jeffrey Schmid, San Francisco Fed President Mary Daly and Atlanta Fed President Raphael Bostic are scheduled to speak later in the day.
Benchmark 10-year bond yields, which hit an early November high of 5.57% earlier this week, were last marked at 4.538%, while 2-year bonds were set at 4.924 %.
The US dollar index, which tracks the greenback's performance against a basket of six global currencies, rose 0.51% to a five-month high of 105.816.
Bank Profit Key
Bank earnings are likely to take center stage in trading today, with first-quarter updates from three of the country's largest lenders: JPMorgan, Citigroup. (c) and Wells Fargo (CFM) .
JPMorgan (JPM) Shares fell 3.5% in early trading after the bank reported better-than-expected first-quarter earnings but noted a sequential decline in net interest income and issued a cautious outlook statement from CEO Jamie Dimon. .
Related: JP Morgan Stock Falls as Key First Quarter Earnings Metric Disappoints Wall Street
The financial sector is key to this year's first-quarter earnings season and is expected to contribute about 18% of the S&P 500's $457 billion in profits, second only to the information technology sector.
Looking ahead to the start of the trading day on Wall Street, futures linked to the S&P 500 suggest a drop of 22 points, while those linked to the Dow Jones Industrial Average predict an opening drop of 116 points.
Meanwhile, the tech-focused Nasdaq expects a 100-point drop at the open amid a broader decline in chip stocks. This is related to a Wall Street Journal report that China has ordered its largest telecom operators to phase out the use of foreign-made semiconductors.
Intel (INTC) shares fell 1.94% to $36.90, while Advanced Micro Devices (amd) Shares fell 1.8% to $167.47. NVIDIA (NVDA) was also in the red, falling 0.64% to $900.40.
In overseas markets, the regional Stoxx 600 rose 0.95% in midday trading in Frankfurt following yesterday's dovish policy meeting at the European Central Bank. The ECB prepared the first rate cut in more than a year for the end of June.
More Wall Street analysts:
- Analyst reveals new Nike price target ahead of big summer for sports
- Analysts weigh in on Google parent Alphabet shares after cloud event
- Analysts Renew Disney Stock Price Target After Proxy Fight
Overnight in Asia, the rise of the US dollar drove the yen to a record low of 153.34, creating the potential for intervention in the currency market in the coming weeks. The Nikkei 225 closed down 0.21% in Tokyo.
Asian stocks in general were also in the red, with the MSCI index excluding Japan falling 1.14%, following weaker-than-expected trade data from China. The report showed a surprising drop in both imports and exports during the month of March.
Related: A veteran fund manager picks his favorite stocks for 2024
