(Reuters) – U.S. stock index futures fell on Monday after the S&P 500 and Nasdaq hit record highs at the previous close, as investors took a break after a busy start to the week with major jobs data and the Federal Reserve chairman’s announcement. did. Jerome PowellCongressional testimony.
The Nasdaq started March with a new intraday high on Friday and closed at a second day high as the artificial intelligence-driven tech rally continues to capture attention on Wall Street.
The S&P 500 index also continued its record rally, with BofA Global Research raising its year-end target for the benchmark index from 5,000 to 5,400, the fourth consecutive month of gains, equivalent to 5% of the three major indexes through February. It supports the rise. Upward from current levels.
For insight into the health of the U.S. labor market, check out the monthly nonfarm payrolls numbers, JOLTS, the ADP National Employment Report due later this week, and the Federal Reserve’s report on the health of the economy. “Beige Book” will be attracting attention.
Powell is also scheduled to testify before lawmakers on Wednesday and Thursday, and analysts expect him to remain in a wait-and-see stance on policy given the recent rise in inflation.
Any negative economic surprise that could significantly delay the start of rate cuts this year could test the market’s unflinchingly positive sentiment. With the economy performing stronger than expected, investors are already dampening expectations about how quickly and deeply the Fed will cut rates, as easing policy too soon risks reigniting inflation.
Analysts at HSBC said: “The path to the 2% target may not be so easy, especially given January PCE core inflation data is picking up and labor market data remains strong. “We still expect the first Fed rate cut in June.” Note.
According to CME Group’s FedWatch tool, market participants believe there is a 73.3% chance that the Fed will make its first rate cut in June and a 90.4% chance that it will happen in July.
As of 5:41 a.m. ET, the Dow e-mini was down 75 points or 0.19%, the S&P 500 e-mini was down 5.25 points or 0.1% and the Nasdaq 100 e-mini was down 11.25 points or 0.06%. did.
Among the major pre-market moves, Nvidia rose 1.1% after its market cap closed above $2 trillion for the first time on Friday.
Other chipmakers, including U.S.-listed shares of Micron Technology, Arm Holdings and Taiwan Semiconductor Manufacturing Co., rose between 1.9% and 4.2%, on track to extend AI gains from last week.
Macy’s rose 15.5% after real estate investment firms Arkhouse Management and Brigade Capital Management raised their bids for the department store chain.
Cryptocurrency and blockchain-related companies such as Coinbase Global, BitFarms, Riot Platforms, and Marathon Digital have increased by 5% as Bitcoin rose to a two-year high and surpassed $65,000. – Increased by 7.3%.
(Reporting by Ankika Biswas in Bengaluru; Editing by Maju Samuel)
