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Nasdaq, S&P 500, Dow: US CPI & Earnings Set to Drive Market Moves

By:
Arslan Ali
Published: Feb 13, 2024, 13:02 GMT+00:00

As January CPI forecasts hint at a drop to 2.9%, Wall Street gears up for a cautious trading day, eyeing Fed's next moves.

Indices Recap

Key Insights

  • January CPI expected to drop to 2.9% year-on-year, potentially affecting Fed’s interest rate strategy.
  • Earnings from Coca-Cola and Shopify in focus, alongside Bitcoin’s surge past $50,000 mark.
  • With futures pointing lower and major earnings reports due, the markets are on edge, reflecting the intricate dance between economic data and investor sentiment.

Market Watch: Inflation Data and Earnings Reports Set Tone for Wall Street

Wall Street braces for a cautious start as investors anticipate the January U.S. inflation report, crucial for the Federal Reserve’s interest rate decisions. This comes alongside earnings reports from Coca-Cola and Shopify, with Bitcoin surpassing $50,000.

Expected to slow to 2.9% year-on-year from 3.4%, January’s CPI could impact the Fed’s stance on future rate cuts, aiming for a “soft landing” to curb inflation without harming economic growth.

U.S. stock futures, including the S&P 500, Nasdaq, and Dow, indicate a lower opening, reflecting the mixed performance in previous sessions.

This week also sees key earnings from Coca-Cola, Shopify, Airbnb, Cisco Systems, and Coinbase, offering insights into consumer behavior and the tech sector’s prospects amidst AI and cryptocurrency market fluctuations.

About the Author

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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