The primary U.S. market indicators suggest a potential rise in stocks on Monday, potentially making up for a few sessions of downward trending.
Technology stocks could play a vital part in Wall Street's early rebound, which is further highlighted by the Nasdaq 100 futures rising by 1.2 percent. There's also buzz about Alphabet's shares skyrocketing by 5.0 percent during pre-market trading due to reports from Bloomberg about Apple's discussion to integrate Google's Gemini AI engine into the iPhone.
Significant pre-market strength is also being observed in Nvidia ahead of its GTC conference, where updates on its AI strategies are expected.
However, the overall trading activity could remain moderate as traders anticipate the Federal Reserve's monetary policy meeting scheduled for Tuesday and Wednesday. The central bank is not expected to make any changes to the interest rates. Nevertheless, the meeting's subsequent statement and economic projections could considerably influence rate prospects.
Recent surprisingly high inflation readings have lessened hope of an initial Fed rate cut in June. Consequently, with traders awaiting the Fed meeting, stocks mostly declined during Friday's trading session.
The major stock market indexes finished with substantial loses, with the Nasdaq and the S&P 500 witnessing lower closes for three consecutive days. The high-tech Nasdaq decreased by 0.7 percent for the week, while the S&P 500 slightly fell by 0.1 percent and the Dow remained practically static.
Wall Street uncertainty chiefly emanated from concerns over interest rate prospects before the Fed's monetary policy meeting.
According to a report from the Labor Department, import prices in the U.S. saw a rise consistent with economic predictions in February. The report indicated that export prices rose by 0.8 percent in February, which was more than was expected.
A report from the Fed showed a nominal increase in U.S. industrial production in February, as manufacturing and mining output bounced back from weather-related dips in January.
Preliminary data from the University of Michigan showed a slight decline in consumer sentiment in the U.S. in March. Forecasts for inflation over the coming year and the long-term remained steady at 3.0 percent and 2.9 percent, respectively.
On the other hand, a report from the Federal Reserve Bank of New York indicated a significant contraction in manufacturing activity in New York in March.
Software stocks saw significant losses, with the Dow Jones U.S. Software Index experiencing a 2.7 percent drop. Adobe led the way of the falling stocks by dropping 13.7 percent despite its fiscal first quarter results exceeding expectations. However, this fall also came with disappointing revenue guidance for the next quarter.
Crude oil futures increased to $81.32 a barrel, gold futures rose to $2,165.90 an ounce, and the U.S. dollar traded at 149.13 yen and $1.0901 against the euro.Asian stock markets enjoyed gains for the most part on Monday, attributable to China's industrial output and retail sales data surpassing projections and investor anticipation of multiple significant central bank verdicts.
While the dollar held firm, the yen displayed inconsistent behavior leading up to a string of central bank meetings involving the Federal Reserve (Fed), the Bank of Japan (BOJ), the Reserve Bank of Australia (RBA), the Swiss National Bank (SNB), and the Bank of England (BOE) scheduled for the week. Gold prices dropped slightly, whereas oil prices climbed, further building on the previous week's gains in response to signs of dwindling supplies.
Chinese markets experienced a boost as public anticipation for potential stimulus measures helped cushion the impact of mixed economic information. The Shanghai Composite Index managed to leap by 1.0 percent to 3,084.93, whilst the Hang Seng Index in Hong Kong edged upwards by a mere 0.1 percent, shutting at 16,737.12.
Chinese data for the initial two months of 2024 revealed that industrial output, retail sales, and fixed asset investment outpaced forecasts. However, higher unemployment, declining property investment, and disappointing bank loans data for February suggested that additional stimulus might be introduced to stabilize growth in the world's second-largest economy.
Japanese markets led the regional surge, buoyed by a weaker yen as investors prepared for a potential BOJ policy shift announced on Tuesday. As major Japanese companies reported substantial pay increases during spring wage negotiations, the central bank is widely expected to abandon its negative interest rates and yield curve control policies.
Despite fresh data indicating that Japan's core machinery orders fell more than expected in January, the Nikkei 225 Index jumped 2.7 percent to 39,740.44. Meanwhile, the Topix Index closed 1.9 percent higher at 2,721.99.
Honda Motor and Nissan Motor saw respective increases of 2.7 percent and 4.1 percent following their agreement to collaborate on developing electric vehicles.
Seoul stocks also enjoyed a significant rise, led by tech shares and battery makers, in anticipation of the Fed meeting on Tuesday and Wednesday. The Kospi rose 0.7 percent to 2,685.84.
Meanwhile, ahead of the Reserve Bank of Australia's interest rate decision on Tuesday, Australian markets fluctuated before ending higher. Even though no change in interest rates is anticipated, the central bank is expected to maintain a hawkish policy, pointing to persistent inflation concerns.
European stocks registered modest gains on Monday, following key Eurozone inflation data and in anticipation of this week's Fed and Bank of England policymaking meetings. Both the UK's FTSE 100 Index and Germany's DAX Index ascended by 0.2 percent.
Regarding potential market movers in focus, shares of software company HashiCorp (HCP) are surging in pre-market trading following a Bloomberg report claiming the company is exploring several options, including a sale.
The multinational beverage company, PepsiCo (PEP), is predicted to experience an upward swing. This change comes after Morgan Stanley elevated the rating of the company's stock to Overweight, a significant increase from its previous status of Equal-Weight.
Similarly, the Super Micro Computer (SMCI) shares are witnessing a rise in the pre-market phase. This rise in strength is due to the esteemed placement of the company in the S&P 500, which distinctively upholds it as an Information Technology enterprise.
