Short Description
U.S. equity futures slip ahead of key inflation data, capping a turbulent week driven by AI sell-offs and mixed global trade signals. Markets remain on edge.
Read Time: 2 minutes 15 seconds
Main Article
Global stocks are poised to end a volatile week in the red as investors brace for pivotal U.S. inflation data. Futures for the Dow Jones Industrial Average and S&P 500 edged lower in premarket trading, following steep losses in the prior session triggered by renewed artificial-intelligence concerns and shaky corporate earnings. The sell-off in U.S. markets rippled into Asia, where major indexes like Japan’s Nikkei and Hong Kong’s Hang Seng fell sharply. Attention is now laser-focused on the January Consumer Price Index (CPI) report, which will heavily influence the Federal Reserve’s rate cutting path for 2024. Analysts forecast a cooling in both headline and core inflation, which could bolster hopes for future monetary policy easing.
Mixed signals from international trade provided a counterbalance to the market’s anxiety. Hopes were raised by a new U.S. trade deal with Taiwan and reports that Washington may shelve key technology restrictions on China ahead of a future leaders’ summit. In Europe, equity indexes were mixed in early trade, with technology shares gaining ground after positive results from industry giants like Applied Materials and France’s Capgemini. Meanwhile, the U.S. dollar edged higher and Treasury yields ticked up as markets adopted a wait-and-see stance before the inflation print. The data is crucial, as recent strong economic indicators have sowed doubt about the pace and extent of expected Fed rate cuts this year.
In commodity markets, oil prices were headed for a weekly loss amid forecasts of rising global supply and easing geopolitical tensions in the Middle East. Conversely, gold prices rebounded from recent losses as dip-buyers emerged ahead of the CPI release. Bitcoin saw a modest recovery, though it remained volatile after a recent sharp sell-off. U.S. and Canadian markets will be closed Monday for a public holiday, offering a brief pause in what has been a jittery period for global investors.
Short Summary
Markets closed a turbulent week cautiously, with eyes locked on U.S. inflation data to guide the Fed’s policy direction. While AI sector worries sparked sell-offs, easing trade tensions provided some support. Key themes included global equity declines, a firmer dollar, and volatile commodities, setting the stage for a data-dependent trading landscape ahead.
