U.S. stock futures saw a slight decline on Tuesday morning after a positive start to the week, with investors gearing up for a whirlwind of events including megacap earnings, the latest Federal Reserve interest rate decision, and an upcoming jobs report. The markets are also poised to end a six-month winning streak.
The Dow Jones Industrial Average futures dropped by 60 points, or 0.16%, while S&P 500 futures slipped 0.2% and Nasdaq 100 futures climbed 0.15%. Despite a strong previous session that saw Tesla shares surge and Apple stocks rise following a bullish upgrade, stocks are on track for their first losing month since October. The S&P 500 and Nasdaq Composite are both expected to see declines of over 2%, with the 30-stock index facing a potential loss of more than 3% in April.
Markets are adjusting expectations for interest rate cuts in 2024, with only one quarter percentage point cut now priced in compared to the initial projections of six or seven cuts earlier in the year. The recent persistence of inflation and a robust economy have led to these revised forecasts, prompting some experts to anticipate a temporary slowdown in the market.
This week is full of important events, including the Federal Reserve policy meeting where interest rates are expected to remain unchanged. Investors will also be closely watching Fed Chief Jerome Powell’s post-meeting statements for any hints of a more hawkish stance. Additionally, major companies like Amazon and Apple are set to report their quarterly results, along with several other notable firms, including McDonald’s, Coca-Cola, and Starbucks. The week will culminate in the April jobs report release.
Vocabulary List:
- Decline (noun): A gradual and continuous loss of strengthnumbersor value.
- Whirlwind (noun): A situation or series of events where things happen very quickly.
- Megacap (noun): A term used to describe a company with a market capitalization value of more than $200 billion.
- Hawkish (adjective): Favoring tighter monetary policy to control inflation.
- Postpone (verb): To delay an event or activity to a later time or date.
- Inflation (noun): An increase in the general level of prices for goods and services in an economy.
