US Index Futures Down, Oil Prices Slide – Market Responds to Powell’s Remarks Ahead of Opening Bell
February 05 2024 - 5:51AM
IH Market News
U.S. index futures are down in Monday’s pre-market, reflecting
the impact of Jerome Powell’s statements in a CBS interview on
Sunday. The Fed chairman tempered expectations for immediate
interest rate cuts, signaling a more cautious approach. This
scenario precedes a week full of corporate earnings releases and
comes in a context of geopolitical tensions in the Middle East
following recent U.S. military actions.
At 05:25 AM, Dow Jones futures (DOWI:DJI) fell 88 points, or
0.23%. S&P 500 futures dropped 0.21%, and Nasdaq-100 futures
retreated 0.18%. The yield on 10-year Treasury notes was at
4.089%.
In the commodities market, West Texas Intermediate crude oil for
March fell 0.50% to $71.93 per barrel. Brent crude oil for March
dropped 0.35%, close to $77.06 per barrel. Iron ore with a 62%
concentration, traded on the Dalian exchange, fell 0.63% to $132.43
per metric ton.
Today’s economic agenda in the U.S. starts at 09:45 AM with the
S&P Global report, which will release the revised reading of
the Purchasing Managers’ Index (PMI) for January’s service sector
activity. At 10:00 AM, the Institute for Supply Management will
present the ISM index for January’s service sector activity.
Asian markets ended the session mostly in the red, with the
resilience of the Nikkei, which rose 0.54%, standing out. Despite
signs of expansion in the Chinese service sector, concerns about
China’s economic recovery kept sentiment negative, even with new
stimuli from Beijing, such as the reduction in the bank reserve
requirement ratio.
European markets are making progress, driven by investors’
reaction to recent statements by the President of the U.S. Federal
Reserve and by optimistic financial results presented by major
corporations in the region, indicating renewed optimism in the
European economic landscape.
Friday’s trading session in the U.S. was marked by a notable
rise, driven by favorable results from giants like Meta
Platforms (NASDAQ:META) and Amazon
(NASDAQ:AMZN), as well as a surprisingly positive employment
report. With the Dow and S&P 500 reaching new records, the
market reflected optimism, overcoming mid-week losses. The Dow
Jones rose 0.35% to 38,654.42 points on Friday. The S&P 500
advanced 1.07% to 4,958.61 points, and the Nasdaq increased by
1.74% to 15,628.95 points. The retail sector also stood out,
benefiting from the prospect of increased consumer spending,
contrasting with the decline in gold and oil stocks due to the fall
in the prices of these commodities.
For Monday’s quarterly results, financial reports are scheduled
to be presented before the market opens by
Caterpillar (NYSE:CAT),
McDonald’s (NYSE:MCD), Estée
Lauder (NYSE:EL), Tyson Foods (NYSE:TSN),
Onsemi (NASDAQ:ON), among others.
After the close, numbers from Palantir
Technologies (NYSE:PLTR), NXP
Semiconductors (NASDAQ:NXPI), Chegg
(NYSE:CHGG), Fabrinet (NYSE:FN), Simon
Properties (NYSE:SPG), Symbotic
(NASDAQ:SYM), and more are awaited.
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