The Market News Today: Amazon, Apple, Fed Meeting, and Powell in Focus This Week

Big Tech Earnings & Fed Decision Highlight Investor Focus

As the week unfolds, investors await the Federal Reserve’s policy meeting and pivotal earnings from Amazon and Apple. The Fed is anticipated to maintain rates, yet market attention pivots to Chair Jerome Powell’s insights on potential rate cuts. Amidst tech giants’ earnings, Amazon’s Tuesday release marks its Dow Jones inclusion, while Apple’s Thursday report offers insights into iPhone sales. Additional notable earnings from AMD, Coca-Cola, and McDonald’s, alongside Friday’s US employment data, round out the week’s key events.

Stock Futures Rise Post-S&P 500’s Best Week Since November

S&P 500 futures climbed in the pre-market session on Monday following its strongest week since November, with Dow Jones and Nasdaq 100 futures also up. Wall Street anticipates more corporate earnings, crucial labor data, and a Federal Reserve meeting. Earnings from major firms like McDonald’s, Coca-Cola, Apple, and Amazon drive optimism, with over 80% exceeding expectations so far. The Fed’s interest rate announcement on Wednesday and April’s nonfarm payrolls report on Friday are key focal points for investors gauging economic health.

Treasury Yields Decline Ahead of Fed Meeting

U.S. Treasury yields fell early Monday as investors focused on the upcoming Federal Reserve policy meeting and economic data releases. With markets expecting unchanged interest rates, attention is on the central bank’s policy guidance, particularly regarding potential rate cuts. Recent data showing economic resilience and persistent inflationary pressures adds to investor anticipation. Key releases this week include job openings figures, private payrolls report, and April’s jobs report, offering insights into the labor market and broader economy amidst elevated interest rates.

Oil Prices Slide Amid Israel-Hamas Ceasefire Talks

Oil prices dipped 1% early in the session on Monday as peace talks between Israel and Hamas in Cairo eased Middle East conflict fears. U.S. inflation concerns also weighed, dimming prospects for imminent interest rate cuts. Efforts to mediate a ceasefire moderated geopolitical tensions. U.S. inflation data, rising 2.7% through March, surpassed the Fed’s 2% target, reducing rate cut hopes. Dollar strength ensued, impacting commodity prices. China’s industrial profit growth slowdown added to demand worries, though oil prices could rebound pending U.S. inventory and China’s PMI data improvements.

Gold Faces Challenges Amidst Fed Meeting, Employment Data

Gold faces challenges in the short term due to the delayed timeline for rate cuts. However, according to some analysts, if it can maintain a range between $2200 and $2350, it may benefit from potential U.S. macroeconomic downturns. The Federal Reserve’s policy meeting from April 30 to May 1 and the release of non-farm payrolls data on Friday are crucial for market sentiment. Investors anticipate the Fed to maintain its benchmark interest rate between 5.25% and 5.5% at this meeting, awaiting signals from Chair Jerome Powell regarding future monetary policy directions.