The Market News Today: BOE Rate Decision Looms as Traders Speculate on Future Cuts

Bank of England Expected to Maintain Rates Amid Uncertainty

Bank of England set to hold rates at 5.25%, with Governor Bailey’s statement under scrutiny. Inflation at 3.2% in March, above target. Despite signs of easing inflation, uncertainty looms over potential rate cuts. Traders divided on June cut, leaning towards August. Attention on MPC votes split for insights on future policy. Economic outlook dampened by growth downgrade, despite slight recovery. Markets cautious, but Capital Economics predicts rate cuts in June to combat low inflation.

Arm’s Lackluster Revenue Guidance Dampens Investor Sentiment

Chip designer Arm’s shares dip 8.83% in premarket trading due to weak revenue outlook. Fourth-quarter revenue hits $928 million, driven by AI demand. Licensing business grows 60%, royalties up 37% year-over-year. Guidance for 2025 fiscal year disappoints, below analyst expectations. First-quarter sales forecast slightly exceeds estimates, but fails to impress.

Dow Futures Are Dipping After Six-Day Winning Streak

Dow Jones futures are declining slightly on Thursday, after a sequence of six consecutive gains. Airbnb’s shares are falling over 8% despite exceeding first-quarter forecasts, affected by weak future guidance. In contrast, Robinhood’s shares are rising by 3% after surpassing first-quarter earnings and revenue estimates. Investors are turning their attention towards the upcoming results from Warner Bros. Discovery and Akamai Technologies, while also awaiting the latest weekly jobless claims data.

U.S. Treasury Yields Rise as Fed Officials Speak

U.S. Treasury yields are climbing on Thursday as investors digest remarks from several Federal Reserve officials, searching for clues on future interest rate movements. Uncertainty lingers over potential rate cuts this year. Boston Fed President Susan Collins recently suggested that rates are likely to remain unchanged until inflation approaches the Fed’s 2% target. More Fed officials will speak this week, with jobless claims and consumer sentiment data also anticipated.

Gold Retreats, Oil Climbs on Fed Rate Speculations

Gold prices declined Wednesday as investors anticipated U.S. economic data, potentially influencing Federal Reserve rate cuts. A modest dollar rise further dampened gold’s appeal, as the metal becomes less attractive to holders of other currencies during dollar gains. Analysts suggest limited downside for gold, pending a significant market catalyst. Conversely, oil prices surged due to decreased U.S. crude inventories and optimism for an impending Fed rate cut. Brent and WTI crude prices increased, with rising gasoline stocks preventing further gains. Market focus remains on upcoming U.S. consumer data and central bank officials’ remarks.