Investing.com — New York stock futures are rising to start a new trading week as markets prepare for a major monetary policy announcement from the Federal Reserve. More blockbuster earnings are expected in the coming days, including earnings from Amazon (NASDAQ:) and Apple (NASDAQ:). Elsewhere, Tesla (NASDAQ:) has signed a deal with Baidu (NASDAQ:) to bring the company's advanced fully self-driving capabilities in China through the internet giant's mapping and navigation capabilities, Bloomberg News reports. It is said that
1. US futures points increase
U.S. stock futures edged higher on Monday as traders braced for the Federal Reserve's key interest rate decision and new corporate earnings to be released this week.
By 03:25 ET (07:25 GMT), the contract was up 59 points or 0.2%, up 10 points or 0.2% and up 47 points or 0.3%.
Strong quarterly results from Google's Alphabet (NASDAQ:) and software group Microsoft (NASDAQ:) helped propel mega-cap tech stocks higher, with major indexes closing in the green at the end of the session. Benchmark and tech stocks both posted their biggest weekly gains since November 2023, ending a multi-week losing streak.
New indicators showing U.S. inflation accelerated slightly from a year earlier in March also strengthened expectations that the Fed could cut interest rates as early as September, adding to the stagnation in the world's largest economy. Allayed some of the concerns surrounding rationing.
2. The Fed's interest rate decisions are yet to come.
remove ads
.
This week's major economic event is scheduled to take place on Wednesday, when the Federal Reserve is scheduled to release its latest interest rate announcement.
Markets did not expect the U.S. central bank to change its borrowing costs from 5.25% to 5.50%, the highest level in more than 20 years, and comments from Fed Chair Jerome Powell will be particularly closely watched. Chairman Powell warned in April that recent data “does not provide greater confidence” that inflation is sustainably falling to the 2% target level, adding that “it will take longer than expected to reach that confidence.” “It is likely to take a long time,” he added.
Officials remain wary of cutting rates too soon, citing signs of sustained price growth, a resilient labor market and solid activity across the U.S. economy. According to the FedWatch tool tracked by CME Group (NASDAQ:), many traders have since assumed that the Fed's long-awaited first rate cut, which some thought would occur in the spring of this year, is now It is believed that this will not be implemented until September.
But as ING analysts warned in a note to clients last week, “long-term risks remain that the Fed will ultimately move rates lower to more neutral levels more slowly than expected.” There is.”
3. Amazon and Apple highlight weekly earnings parade
E-commerce giant Amazon and iPhone maker Apple will headline a number of corporate earnings this week.
When Amazon reports its results after the closing bell on Tuesday, investors will be watching to see whether the company's continued cost-cutting efforts continue to boost profits. Expense-cutting drives and strong consumer demand during the holiday shopping season helped improve margins in the company's large North American operations last quarter.
remove ads
.
Apple is scheduled to report results after the close on Thursday, with traders focused on weak shipments of the California-based company's flagship iPhone phone and the ability of its services division to make up for the weakness. Probability is high.
Analysts also note that mega-cap peers such as Alphabet, Microsoft and Facebook parent company Metaplatforms (NASDAQ:), among others, have recently detailed plans to spend large sums of money on nascent technology integration. As a result, we expect that artificial intelligence will be in the spotlight for both companies.
4. Tesla partners with Baidu to deploy autonomous driving in China – Bloomberg
Tesla has signed a deal with Baidu to bring the company's advanced fully self-driving (FSD) capabilities to China through the internet giant's maps and navigation capabilities, Bloomberg reported on Monday.
The world's largest electric vehicle maker plans to use lane-level navigation and mapping provided by Baidu to roll out FSD services, which CEO Elon Musk has touted as a key focus. said the report.
The report comes just a week after Baidu announced that Tesla cars will integrate Baidu Maps next month. Musk visited China over the weekend.
The partnership with Baidu allows Tesla to clear major regulatory hurdles in accessing data collection on public roads in China, potentially offering FSD technology domestically.
5. Falling oil prices
Oil prices fell sharply on Monday as peace talks between Israel and Hamas eased concerns about escalating conflict in the Middle East and potentially disrupting supplies from key regions.
remove ads
.
By 3:26 ET, futures were trading 1.0% lower at $83.05 per barrel, while the contract was down 0.9% at $87.39 per barrel.
Hamas officials told Reuters on Sunday that a Hamas delegation was scheduled to visit Cairo on Monday for talks aimed at securing a ceasefire, and that the group was responding to Israel's latest Gaza phased ceasefire proposal submitted on Saturday. He said it is expected that he will respond.
