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US futures pace as focus turns to inflation data
U.S. stock futures were idle Tuesday, with the technology sector a bright spot, as Wall Street began a holiday-shortened week, focusing on an upcoming inflation report closely watched by the Federal Reserve.
S&P 500 Futures (ES=F) rose 0.1%, while tech-heavy Nasdaq 100 contracts (QN=F) added 0.2% after solid closing gains on Friday. Futures on the Dow Jones Industrial Average (YM=F), which lists fewer technology names, fell 0.1%.
Major gauges are regrouping after a volatile week as traders return from the Memorial Day holiday. Stocks were hit back and forth by two impulses: fading optimism about rate cuts, on the one hand, and high hopes for AI, on the other. The latter is led by Nvidia (NVDA), whose shares continued their post-earnings slide, gaining 3% in pre-market trading.
Investors are now firmly back to inflation surveillance, counting down until the release of the Federal Reserve’s preferred PCE indicator on Friday. Fed officials have sent out a series of warnings that data must show a real cooling in inflation to trigger a policy change, with Neel Kashkari, the latest to join them.
See more information: How does the job market affect inflation?
These comments, next economic prints hotter than expected It is Fed hawkish minutesled traders to once again reduce bets about interest rate cuts this year. Data hunters will get updates on Q1 GDP and consumer confidence later this week, which could be a catalyst.
On other individual engines, GameStop (GME) actions rose more than 25% in pre-market trading. The gaming retailer said Friday that it raised not far from $1 billion by selling shares during the meme rally in early May.
Live updates2
- Tuesday, May 28, 2024 at 12:53 GMT+2
Foot Locker is not out of the woods
Foot cabinet (Florida) has had a horrible 12 months.
Poor financial performances have led to surprisingly weak prospects, causing shares to fall 16% last year.
The Street is bracing for another terrible quarter from the sneaker and sportswear retailer when it’s reported Thursday morning.
EvercoreISI analyst Michael Binetti says investors should expect a “very difficult quarter.” The company may alert again for the entire year.
He points out several reasons:
“In addition to pressure from low-income consumers, we believe major product releases like the Air Max DN have underperformed, and the recent Jordan 4 Industrial Blue is selling below MSRP in the resale channel ($ 185 vs $215 MSRP).”
EvercoreISI’s Take on Trump 2.0 Tariffs
We started to see Wall Street crunch the numbers on the economic impact of the new tariffs that President Trump would be interested in implementing if he won a second term.
Today EvercoreISI weighs in with its opinion:
“Presidents rarely enact or implement the entirety of any one campaign idea, and Trump, in particular, likes to use bold ideas as a launchpad. However, it is critical to understand what dramatic starting point Trump has presented, as this has implications for where he could, Ultimately, coming down to face value, the combination of the proposed 10% across-the-board tariff and China’s 60% tariff would lead to an overall U.S. weighted average tariff rate of nearly 17%, the highest since the 1930s. It was Hawley. On a static basis (that is, without assuming any dynamic economic effects), tariffs would increase from 0.3% of GDP to 1.9% of GDP – an increase of more than $400 billion annually. by commercial partners.”
Are markets underestimating a new Trump trade war? (EvercoreISI)
