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A
bumper forecast from heavyweight chip designer Nvidia in the
previous week boosted euphoria around artificial intelligence
(AI), propelling Wall Street to new peaks and overshadowing the
gloom due to a likely delayed start to the Fed's easing cycle.
The S&P 500 and the Dow Jones industrials both notched all-time
highs last week, while the tech-heavy Nasdaq came within a close
range of its record intraday peak hit in November 2021.
As the fourth-quarter earnings season winds down, investors turn
their focus back on upcoming economic data, which will shape
expectations for the timing of U.S. interest rate cuts.
The release of January's personal consumption expenditures price
index (PCE)- the Fed's preferred inflation gauge - on Thursday
could hinder the recent stocks rally if the data points to
persistent price pressures.
Hotter-than-expected readings on consumer and producer prices
earlier this month had led traders to push back bets of the
first rate cut to June from May.
"While a hot (PCE) print is likely to again question the last
mile of the disinflation train, there is little scope for
markets to price in any additional hawkishness," said Charu
Chanana, head of FX strategy at Saxo Markets in a note.
Data on durable goods, consumer confidence and manufacturing
activity will also be on investors' watchlist this week.
At 5:22 a.m. ET, Dow e-minis were down 53 points, or 0.14%, S&P
500 e-minis were down 3.5 points, or 0.07%, and Nasdaq 100
e-minis were down 4.75 points, or 0.03%.
Megacap growth stocks were mixed in premarket trading on Monday,
though Nvidia continued to outperform with an advance of 1.2%
after hitting $2 trillion in market value for the first time on
Friday.
Warren Buffett's Berkshire Hathaway rose 4.5% after the
conglomerate on Saturday posted its second straight record
annual operating profit on a boost from its insurance business.
Shares of Moderna slipped 2.3% as HSBC downgraded the U.S.
vaccine maker to "reduce" from "hold."
Intuitive Machines slumped 34.5% after the company said its
spacecraft had tipped over shortly after touching down on the
lunar surface.
(Reporting by Amruta Khandekar; Editing by Shinjini Ganguli)
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