Global Rice News

Wall Street Poised for Slightly Lower Opening as Investors Watch Inflation and Economic Data

Wall Street is expected to open with a slight decrease as investors eagerly await key economic data and an inflation reading later in the week. These figures could provide insight into the Federal Reserve’s future interest rate policies. The S&P 500 and Dow Jones Industrial Average closed near eight-week highs on Friday, while the Nasdaq Composite reached a two-month peak, driven by the strong performance of large-cap stocks and decreasing Treasury yields.

This week, investors will closely analyze a range of economic data and speeches from Federal Reserve officials to gauge the trajectory of interest rates. There is a growing belief that the Fed has finished raising borrowing costs. On Tuesday, the release of consumer price data is expected to show a decrease in headline consumer prices from 3.7% in September to 3.3% in October. Core prices, which exclude volatile food and energy components, are projected to remain unchanged from the previous month.

Peter Cardillo, Chief Market Economist at Spartan Capital Securities, noted that if the year-over-year decline in inflation continues, it would confirm that the Fed will not raise interest rates in December and is likely done with its hiking campaign.

This month, major US stock indexes have experienced a significant rebound, driven by stronger-than-expected earnings and the optimism that US interest rates have reached their peak. However, investors have delayed their expectations of rate cuts from May to June.

Currently, traders have priced in an 86% chance of the Fed maintaining interest rates in December.

Moody’s recently downgraded its outlook on the US credit rating from “stable” to “negative”. They cited concerns over large fiscal deficits and a decline in debt affordability. This follows a similar sovereign rating downgrade by Fitch earlier in the year. Despite Moody’s move, it had minimal impact on the Treasury market. The benchmark US 10-year Treasury yield remained stable at 4.640%, below the 16-year peak reached last month.

Over the weekend, US House of Representatives Speaker Mike Johnson unveiled a stopgap spending measure from the Republican party to prevent a government shutdown on Friday. However, this measure faced opposition from lawmakers in both parties.

At 8:33 a.m. ET, Dow e-minis were down 33 points, or 0.1%, S&P 500 e-minis were down 6 points, or 0.14%, and Nasdaq 100 e-minis were down 30 points, or 0.19%.

In premarket trading, Boeing shares climbed 3.4% after reports that China is considering resuming the purchase of 737 Max aircraft during a meeting between the US and Chinese presidents at the APEC summit. Additionally, Dubai’s Emirates announced the acquisition of 90 Boeing 777X jets at the opening of the Dubai Airshow.

On the other hand, Tyson Foods saw a 3.6% drop in premarket trading after the company issued a gloomy revenue forecast for the next fiscal year. The decline in chicken and pork prices, as well as a slowdown in beef product demand, negatively impacted its fourth-quarter sales.

Sources:
– Original article: https://www.republicworld.com