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All
three major indexes jumped last week as a bunch of economic
data, including a consumer price index reading and a retail
sales report, pointed to a soft-landing scenario for the
economy.
Goldman Sachs lowered the odds of the United States slipping
into a recession in the next 12 months to 20% from 25% following
the latest weekly jobless claims and retail sales reports.
Over the weekend, Chicago Fed chief Austan Goolsbee said that
not cutting rates next month could hurt the job market, while
San Francisco Fed President Mary Daly, a voting member on this
year's Federal Open Market Committee (FOMC), said in an
interview with the Financial Times that it is time to consider
adjusting borrowing costs.
When Fed Chair Jerome Powell speaks at the economic symposium in
Jackson Hole on Friday, investors will be looking for any signs
of acknowledgement of a rate cut in September.
Traders currently see a 72% chance of the Fed cutting interest
rates by 25-basis-points (bps) in September, compared to an even
split between a 50 and 25 bps cut seen a week ago, according to
the CME FedWatch Tool.
Minutes from the Fed's last policy meeting are due on Wednesday.
Later in the day, comments from Fed Board Governor Christopher
Waller would also be on investors' radar.
The earnings calendar is slim this week, with cybersecurity
company Palo Alto Networks, retailer Target and home improvement
chain Lowe's being some of the major firms set report later in
the week.
At 05:10 a.m. ET, Dow E-minis were up 20 points, or 0.05%, S&P
500 E-minis were down 5.25 points, or 0.09% and Nasdaq 100
E-minis were down 55.25 points, or 0.28%.
Most megacap and growth stocks slipped in premarket trading,
with Nvidia and Tesla falling more than 1% after rallying last
week.
Dutch Bros fell almost 3% after brokerage Piper Sandler
downgraded the coffee chain's rating to "neutral" from
"overweight".
B. Riley Financial slid 8.6% following a more than 65% drop last
week. Co-founder and co-CEO Bryant Riley had offered to buy the
bank on Friday, following its warning of a hit from its
investment in Vitamin Shoppe-owner Franchise Group.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by
Saumyadeb Chakrabarty)
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