US equity futures slumped before the release of keenly awaited inflation data that could set the stage for the timing of the Federal Reserve move to interest-rate cuts. Treasuries and the dollar were steady.
Contracts on the rate-sensitive Nasdaq 100 slid 0.6% while those on the S&P 500 fell 0.3%, extending Monday’s decline in the main US stock gauge from a high of near 5,050. Nvidia Corp. dropped 1% in premarket trading.
The inflation report, which is expected to show the first reading below 3% on year-over-year headline inflation since March 2021, may not be enough to justify a more rapid shift to monetary easing. Employment, manufacturing and economic growth in the US have surprised on the upside, proving resilient to the fastest rate increases in a generation.
“Despite expecting CPI to print below 3% later, we still think the market is over-exuberant when it comes to when that first cut comes in,” Grace Peters, head of global investment strategy at JPMorgan Private Bank, said in an interview with Bloomberg TV.
Policy makers continued to message to markets that rate-cut bets have become overblown. Federal Reserve Bank of Richmond President Thomas Barkin Monday warned that US businesses accustomed to raising prices in recent years may continue to fan inflation. The market is overlooking the risk of rate increases following the easing cycle, strategists at Citigroup Inc. warned Monday.
Derivatives markets point to the first fully-priced rate cut in June, with three more to follow in 2024, taking the fed funds rate lower by 1 percentage point by December, according to data compiled by Bloomberg.
Investors are taking a breather after optimism about corporate earnings, driven by a combination of resilient US growth and expected interest-rate cuts, pushed the market to technically overbought territory. Allocation to US equities has risen, with exposure to the tech industry at the highest since August 2020, according to a Bank of America Corp. global survey of fund managers.
Corporate Highlights
Key Events This Week
Some of the main moves in markets:
Stocks
Currencies
Cryptocurrencies
Bonds
Commodities
This story was produced with the assistance of Bloomberg Automation.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
