New York, U.S. – Stock futures in the U.S. saw gains alongside a surge in gold prices to a record high, driven by last week’s data indicating a slowdown in inflation. This data has raised hopes for a potential cut in interest rates by the Federal Reserve later this year.
The S&P 500 contracts increased by 0.3%, while markets in Europe, Australia, and Hong Kong were closed for the Easter holiday. Gold prices surpassed $2,265 per ounce, and the dollar index slightly declined. Additionally, Bitcoin dropped below $70,000.
The recent easing in the Fed’s preferred measure of underlying inflation, combined with an uptick in household spending, suggests that the positive sentiment driving stocks to all-time highs remains intact. The core personal consumption expenditures price index, excluding food and energy, rose 0.3% from the previous month, showing a slower pace than the strong reading in January.
Deutsche Bank’s chief U.S. economist, Matthew Luzzetti, noted that the Federal Reserve is closely monitoring data to determine its future policy stance. Fed Chair, Jerome Powell, reiterated at an event on Friday that there is no rush to lower interest rates, emphasizing the importance of containing inflation.
In the tech sector, AT&T Inc. faced a 2% decline in premarket trading after revealing a data breach that leaked personal information of current and former customers onto the dark web.
Asian markets saw mixed results, with Japanese equities slipping due to a slight drop in confidence among large manufacturers. On the contrary, Chinese stocks rallied on the back of improved manufacturing activity, signaling a potential economic recovery. The CSI 300 Index in China rose by 1.6%, leading gains in the region.
Looking ahead, key events scheduled for the week include indicators on U.S. construction spending and ISM Manufacturing data, as well as various PMI reports from Eurozone countries and others.
In summary, the markets are closely watching inflation data and economic indicators for signals on potential changes in Fed policy and overall market sentiment in the coming weeks.