Last Updated: 4:02PM EST
Stock indices finished today’s trading session mixed. Indeed, the Nasdaq 100 (NDX) fell 0.38%, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) gained 0.13% each. At their recent meeting, Federal Reserve officials signaled a cautious stance on interest rate cuts, balancing optimism about inflation control with a wait-and-see approach, as detailed in the meeting’s minutes.
The decision to keep the key overnight borrowing rate steady was coupled with a revised statement, underscoring the need for “greater confidence” in inflation’s decline before considering rate reductions. The minutes emphasized the risk of prematurely easing policy and that inflation must clearly trend towards the 2% target before policy adjustments.
Despite acknowledging the effectiveness of past measures in tempering inflation from its mid-2022 peak, officials expressed a desire for more tangible evidence of sustained progress before softening their monetary stance. Recent data indicating persistent inflation above the Fed’s comfort zone has reinforced a cautious policy outlook.
First Published: 3:45AM EST
U.S. futures hovered lower on early Wednesday morning as investors looked ahead to Nvidia’s (NVDA) fourth-quarter earnings report due today. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.18%, 0.1%, and 0.11%, respectively, at 3:09 a.m. EST, February 21.
All three major U.S. stock indices declined yesterday, primarily attributed to a roughly 4% decline in NVDA stock. This drop reflects elevated investor concerns about Nvidia’s valuation ahead of its earnings. The NDX index contracted by 0.79%. Furthermore, the SPX and DJIA exhibited a moderate decrease of 0.60% and 0.17%, respectively.
Apart from Nvidia’s quarterly report, traders also expect the results from Etsy (ETSY), Wix (WIX), Analog Devices (ADI), Rio Tinto (RIO), Jack in the Box (JACK), Lucid (LCID), and Rivian (RIVN). Meanwhile, Palo Alto Networks (PANW) stock declined 20% after the company lowered its full-year revenue forecast. Also, SolarEdge Technologies (SEDG) fell over 10% on a soft first-quarter outlook.
Moving to the key economic data, markets await the minutes from the Federal Open Market Committee’s (FOMC) January meeting. Investors are eager to hear the central bank’s perspective on the overall health of the economy and any hints regarding when interest rate cuts might occur.
At the time of writing, the U.S. 10-year Treasury yield was down, floating near 4.27%. At the same time, WTI crude oil futures trended higher, hovering near $77.14 per barrel as of the last check due to rising geopolitical tensions in the Middle East.
Elsewhere, European markets are expected to open muted on Wednesday morning as investor enthusiasm fades. Markets worldwide are awaiting the Fed’s FOMC minutes and the NVDA’s results today.
Asia-Pacific Markets End Mixed on Wednesday
Asia-Pacific indices ended today’s trading session on a mixed note. Sentiment in the Chinese markets improved after the People’s Bank of China cut the benchmark lending rate.
Hong Kong’s Hang Seng index gained 1.57%. Also, China’s Shanghai Composite and Shenzhen Component indexes ended higher by 0.97% and 0.79%, respectively. However, Japan’s Nikkei and Topix indices finished lower by 0.26% and 0.19%, respectively.
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