Wall St set to open higher as inflation data boosts softer Fed policy hopes
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
February PCE growth slows
Virgin Orbit announces layoff plans, shares tank
Futures up: Dow 0.37%, S&P 0.28%, Nasdaq 0.14%
Updates prices, adds data and comments
By Amruta Khandekar and Ankika Biswas
March 31 (Reuters) - Wall Street's main indexes were set to open higher onFriday after data showed inflation slowed in February, supporting hopes of a softer monetary policy approach from the Federal Reserve.
The Commerce Department's report showed the personal consumption expenditure (PCE) index, which is the Federal Reserve's preferred inflation gauge, rose 0.3% in February, on a monthly basis, compared with a 0.6% rise in January.
Traders' bets of a 25-basis-point rate hike in May stand at 55.5%, with odds of a pause at 44.5%, according to CME Group's Fedwatch tool.
"As the Fed rate hikes are now kind of starting to take hold right about a year later since they first began perhaps it is a sign that their hikes are starting to cool inflation," said Brandon Pizzurro, director of public investments at Guidestone Capital Management.
"But in terms of the Fed's calculus, they'll have to have more confirmation that disinflation is really taking hold beyond just a few data points here and there."
U.S. 10-year Treasury yields fell to a session low of 3.534% after the data.
Friday will cap a turbulent first quarter for stocks, marked by sticky inflation, shockwaves from the collapse of two regional U.S. banks and signs of trouble in some European banks, as well as a repricing of interest rate expectations from the Fed.
The Nasdaq .IXIC is set for its biggest quarterly percentage gain since the end of 2020 given a rotation into major technology and growth stocks from financial stocks amid fears of a bank contagion, while the cyclicals-heavy Dow Jones DJI is in the red.
The benchmark S&P 500 .SPX is up nearly 6% so far in the first quarter, with the technology sector .SPLRCT up about 20% while the financials index .SPSY is set for its worst quarter since June.
Some Fed officials have noted a potential hit to the economy from banking sector problems, while recent data including an uptick in weekly jobless claims has supported hopes that the central bank is close to the end of its market-punishing rate hikes aimed at cooling demand.
The KBW Regional banking index .KRX and the S&P 500 banks index .SPXBK, which houses major banks, have lost 19% and 14%, respectively, so far during the quarter.
Consumer sentiment data from the University of Michigan is due later in the day, while New York Federal Reserve Bank President John Williams and Fed Governor Lisa Cook are also scheduled to speak.
At 8:45 a.m. ET, Dow e-minis 1YMcv1 were up 122 points, or 0.37%, S&P 500 e-minis EScv1 were up 11.5 points, or 0.28%, and Nasdaq 100 e-minis NQcv1 were up 18.5 points, or 0.14%.
Among specific stocks, Virgin Orbit Holdings VORB.O tanked 41.8% premarket, a day after the rocket maker said it was cutting about 85% of staff because it had not been able to raise new investment.
Rumble Inc RUM.O jumped 11.0% after the video-sharing platform reported a surge in fourth-quarter revenue.
S&P 500 sectoral performance in Q1https://tmsnrt.rs/3G83wmR
Reporting by Amruta Khandekar and Ankika Biswas; additional reporting by Johann M Cherian Editing by Nivedita Bhattacharjee and Vinay Dwivedi
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
