As Wall Street futures indicated a moderate uptick ahead of the trading bell on Monday, traders are reflecting on the moderating interest rates and preparing for the eagerly awaited after-market earnings report from the chip manufacturing giant Nvidia. Infused with optimism, the futures markets saw the S&P 500 rise by 0.5%, the Nasdaq inching up by 0.4%, while the Dow Jones experienced a notable increase of 0.7%.
Markets in Europe welcomed a sense of calm thanks to recent elections in Germany, where the conservative Christian Democratic Union party emerged successfully, overshadowing the right-wing Alternative for Germany (AfD) party. This political shift has contributed to a steadier investment climate as traders analyze the implications of changing dynamics. In the morning session, yields on the benchmark 10-year US Treasuries remained intact, holding steady under the 4.45% threshold.
Investors are eagerly awaiting this Friday, when the Federal Reserve will unveil its preferred inflation metric, the Personal Consumption Expenditures (PCE) price index and its core component for January. This week is packed with corporate earnings reports from notable companies, with giants like Lowe's, TJX, Salesforce, Dell Technologies, Berkshire Hathaway, Home Depot, Intuit, and American Tower also slated to unveil their financial performance.
The market anticipates insights from these reports to gauge economic health and consumer behavior. In Asia, exchanges saw a predominantly lower trajectory overnight, with the Tokyo market being closed for a public holiday. Conversely, European stock markets are showing a moderate increase as midday approaches. Earnings announcements are on the horizon for companies like Domino's Pizza and Owens Corning, which are set to reveal their financial results before the market opens. Economic indicators scheduled for release include the Chicago Fed National Activity Index for January at 8:30 am ET, followed by the Dallas Fed Manufacturing Survey for February at 10:30 am. In the realm of commodities, Bitcoin traded at an impressive $95,667, while West Texas Intermediate crude oil climbed higher to $70.51.
The 10-year US Treasuries yielded 4.43%, and spot gold was valued at $2,942 per ounce, revealing fluctuating trends in asset pricing and trading behavior. The market continues to navigate the complexities shaped by both economic and political elements..