Last Updated: 4:02 PM EST
Stock indices finished today’s trading little changed. Indeed, the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) gained 0.13% and 0.08%, respectively. Meanwhile, the Nasdaq 100 (NDX) fell 0.01%. Earlier today, Minneapolis Fed President Neel Kashkari shared his thoughts on the U.S. economy and the effectiveness of current monetary policy.
He pointed out that progress towards a lower inflation rate has stalled despite the aggressive rate hikes by the Federal Reserve in 2022 and 2023. As a result, he now thinks that the neutral rate—where monetary policy neither boosts nor slows economic growth—might have shifted upwards.
Still, Kashkari suggested that he prefers to hold rates steady for now while keeping an eye on the economy’s performance. However, he indicated that if inflation remains around 3%, the Fed might consider raising rates, although he doesn’t expect this in the near term.
First Published: 4:27 AM EST
The U.S. futures remained mixed on Tuesday morning after notching higher on a solid corporate earnings season and optimism over potential rate cuts. The futures on the Nasdaq 100 (NDX) were down 0.05%. Conversely, the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) were up by about 0.05% and 0.12%, respectively, at 3.28 a.m. EST, May 7.
In after-hours action, shares of software and big data analytics company Palantir (NYSE:PLTR) fell 8.37% after it reported Q1 financials. Further, shares of the EV company Lucid (NASDAQ:LCID) dropped 7.87% as its Q1 performance fell short of analysts’ expectations.
On the earnings front, entertainment giant Disney (NYSE:DIS) will release its Q2 financial results today. Analysts are upbeat about Disney stock ahead of the quarterly print and expect year-over-year improvement in sales and earnings. Alongside Disney, UBS (UBS), Lyft (LYFT), and Occidental Petroleum (OXY) are among other prominent companies slated to release their quarterly financials today.
Turning to this week’s economic reports, March’s Consumer Credit Change data is set for release today. This data reflects consumer credit usage and indicates consumer confidence and spending patterns.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.5%. At the same time, WTI crude oil futures trended lower, hovering near $78.47 per barrel as of the last check.
Elsewhere, European indices opened higher as traders await corporate earnings amid growing optimism over rate cuts.
Asia-Pacific Markets Were Mixed Today
Asia-Pacific indices were mixed on Tuesday, and Japan’s financial markets resumed trading after a holiday.
Japan’s Nikkei and Topix indices were up 1.57% and 0.65%, respectively. Elsewhere, China’s Shanghai Composite was up 0.22%. On the other hand, Shenzhen Component indices fell 0.09%. At the same time, Hong Kong’s Hang Seng index was down 0.49%.
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