Futures range-bound ahead of long weekend break
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[March 28, 2024] (Reuters)
- U.S. stock index futures were lackluster on Thursday as investors
awaited more data to gauge the state of the economy and the Federal
Reserve's policy path, though activity is expected to be muted heading
into a long weekend break.
All three major U.S. stock indexes ended higher on Wednesday, with the
Dow jumping more than 1%, while the S&P 500 clocked an all-time closing
high.
On the radar on Thursday would be the final readings of fourth-quarter
GDP and the University of Michigan's consumer sentiment survey, while
weekly jobless claims data will also be in focus.
Heading into the weekend break, focus shall remain on the Personal
Consumption Expenditures Price Index (PCE), the Fed's preferred
inflation gauge, due on Good Friday, when the U.S. stock market will be
closed.
An upside surprise to inflation could potentially dampen market
enthusiasm around early rate cuts.
Overnight, Fed Governor Christopher Waller said that recent
disappointing inflation data affirms the case for the U.S. central bank
to hold off on cutting its short-term interest rate target, but he did
not rule out trimming rates later in the year.
"His words echo those of Bostic, another hawk, who last week said he
sees only one cut this year," strategists at Societe Generale said in a
note.
"This puts the Fed on course for a split vote over what to do with
interest rates in June if the next three inflation data points do not
reassure, or thinking of the dual mandate, employment trends do not
deteriorate."
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The Nasdaq Market site is seen on the day that shares of Truth
Social and Trump Media & Technology Group start trading under the
ticker "DJT", outside the Nasdaq Market site in New York City, U.S.,
March 26, 2024. REUTERS/Brendan McDermid/File Photo
Traders see an about 60% chance the Fed will begin its easing cycle
in June, as per the CME FedWatch tool.
All three indexes eye strong quarterly gains as an artificial
intelligence-fueled rally helped Wall Street reach record highs
earlier this month. Optimism about the Fed pivoting to cutting rates
later in the year also added to gains.
At 05:20 a.m. ET, Dow e-minis were down 5 points, or 0.01%, S&P 500
e-minis fell 5.75 points, or 0.11%, and Nasdaq 100 e-minis slipped
35.25 points, or 0.19%.
Most megacap growth stocks edged lower in trading before the bell,
with Nvidia down 0.9%. Shares of the AI-giant have fallen more than
2% each in the last two sessions.
Take-Two Interactive Software fell 1.3% after the video game
publisher said it would acquire Gearbox Entertainment, best known
for the first-person shooter game Borderlands, from Sweden's
Embracer for $460 million.
Cryptocurrency and blockchain-related companies advanced as bitcoin,
ethereum prices recovered following a two-day slide. Exchange
operator Coinbase Global, software company MicroStrategy and crypto
miner Riot Platforms rose between 2.2% - 3.3%.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Rashmi Aich)
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