US stocks and bonds faced volatility as traders analyzed mixed data on US spending and inflation, trying to gain insights into the Federal Reserve’s future actions. The S&P 500 fluctuated between gains and losses, while Nasdaq 100 futures lagged behind due to disappointing forecasts from Intel Corp. and KLA Corp. Despite this, two-year US yields increased, while longer-term rates retreated.
The Federal Reserve’s preferred measure of underlying inflation hit a three-year low, raising doubts about whether the central bank will cut borrowing costs. Analysts have differing opinions on the likelihood and timing of rate cuts, with some suggesting that cuts could happen in the next few months, while others believe they may occur in the May-June period.
In the cryptocurrency market, Bitcoin saw a resurgence, surpassing $41,000 and potentially ending a two-week slump. Outflows from the Grayscale Bitcoin Trust slowed, contributing to the rally.
Oil prices dipped slightly but were still on track for the largest weekly gain since October. This was driven by lower US stockpiles and the possibility of additional government stimulus in China.
In company news, American Express Co. reaffirmed its long-term profit and revenue goals, surpassing analysts’ expectations with its earnings forecasts for 2024. Similarly, Visa Inc. reported a profit that exceeded expectations, fueled by increased credit card spending and robust US economic growth. In contrast, T-Mobile US Inc. missed analysts’ earnings estimates, overshadowing a significant increase in new mobile phone subscribers.
Despite threats from Houthi militants, Saudi Aramco, the world’s largest oil company, continued to transport crude and fuels through the Red Sea. This highlights the company’s commitment to maintaining its operations despite security concerns.
Turning to the global market, S&P 500 and Dow Jones futures remained relatively stable, while Nasdaq 100 futures declined. Meanwhile, the Stoxx Europe 600 saw an increase in value.
Currency markets experienced modest fluctuations, with the dollar weakening against the euro and British pound, while the Japanese yen remained steady. In the cryptocurrency realm, both Bitcoin and Ether witnessed slight increases in value.
Bond yields remained fairly stable, and commodity performance varied. While oil prices declined, gold prices rose.
Note: This article was created with the assistance of Bloomberg Automation.
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