Powell shows possible Fed rate reductions in September
Federal Reserve Chairman Jerome Powell opened the door to interest rate cuts in September, claiming that “the negative side risk to employment is rising.”
US stock futures are low as investors are looking for huge Nvidia revenues to chip for their next move.
Nvidia’s revenue is scheduled for August 27th after the market closed. According to data company LSEG, Nvidia is expected to increase earnings per share by 48% with revenue of $45.9 billion in the second quarter.
Dell and Marvell quarterly results are scheduled for the next day.
At the end of the week, investors look at the July Personal Consumption Expense Price Index, the Federal Reserve’s preferred inflation gauge. Core PCE is expected to rise 2.9% year-on-year, compared to June’s 2.8% increase, excluding volatile foods and energy prices.
At 7:56am on ET, futures tied to the Blue Chip Dow fell to 0.21% (95 points) to 45,620.00, while the Broad S&P 500 futures slipped to 0.22% (14.5 points) 6,468.75, while the high-tech heavy NASDAQ Futures lost 0.29%, or 69.25 points. The benchmark’s 10-year financial yield rose to 4.287%.
Despite the expected increase in inflation, Federal Reserve Chairman Jerome Powell last week suggested that they may be ready to support interest rate cuts soon. These comments brought stocks together, closing the Dow at a record high.
Lower fees reduce the cost of borrowing. This should spur business investments and consumer spending to lift the economy.
Corporate News
- Keurig Dr Pepper will buy European coffee company Jde Peet’s for around $18 billion.
- Comcast;’s NBC and Disney’s ABC should revoke their licenses, Trump said in a social media post.
- Intel added to its profits last week, increasing profits after the US government confirmed 10% stake in the chipmaker.
Cryptocurrency
Michael Saylor, co-founder of MicroStrategy, has been suggested on social media.
Separately, Trish Turner said in a LinkedIn post that she has resigned from head of the Internal Revenue Service (IRS) digital assets division, just three months after her role.
Ether set a new record over the weekend.
Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday to Friday morning.
