Last Updated: 4:10 PM EST
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Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.21%, 0.25%, and 0.17%, respectively. Earlier today, Federal Reserve Governor Christopher Waller shared his thoughts on inflation. Waller said that he needs several more months of positive inflation data before he can support the idea of rate cuts but doesn’t see a need for rate hikes.
He mentioned that the higher inflation in early 2024 had caused a debate on whether monetary policy was restrictive enough, but April’s CPI data reassured him that inflation isn’t accelerating.
Waller believes current monetary policy is good enough to curb inflation and pointed to spending and labor market data to support this view. He noted the low probability of rate hikes and suggested the next move might be a rate cut but couldn’t predict when it would happen.
He also discussed how changes in the labor market post-pandemic have altered traditional economic relationships, which could potentially allow inflation to drop without severely impacting employment.
First Published: 4:56 AM EST
U.S. futures remained flat on Tuesday morning after the Nasdaq Composite Index hit an all-time high in yesterday’s trading session. Futures on the Nasdaq 100 (NDX) were down 0.04% at 4:09 a.m. EST, May 21, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) were up by about 0.04% and 0.01%, respectively.
A rally in technology stocks pulled the Nasdaq Composite Index higher yesterday. Micron (MU) closed 3% higher after a rating upgrade from a Morgan Stanley (MS) analyst. Further, Nvidia (NVDA) rose 2.5% as several analysts raised their price targets ahead of NVDA’s Q1 results.
On the other hand, J.P. Morgan (JPM) closed 4.5% lower yesterday after the company disclosed plans to undertake limited stock buybacks at the current price. Moreover, Palo Alto Networks (PANW) stock declined about 9% in the extended trading session following the release of fiscal Q3 results.
Moving to corporate earnings scheduled for release today, investors are looking ahead to the reports from retailers Lowe’s (LOW) and Macy’s (M). Additionally, AutoZone (AZO) and Toll Brothers (TOL) will announce quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.44%. At the same time, WTI crude oil futures trended lower, hovering near $79.25 per barrel as of the last check.
Elsewhere, European indices opened lower today. Investors are awaiting NVDA’s results and a new batch of economic reports from the Eurozone due later this week.
Asia-Pacific Markets Traded Lower Today
Asia-Pacific indices traded lower today as investors evaluated the decision of China’s central bank to keep key lending rates unchanged this month.
China’s Shanghai Composite and Shenzhen Component indices declined 0.42% and 0.71%, respectively. Also, Hong Kong’s Hang Seng index was down 2.14%. At the same time, Japan’s Nikkei and Topix indices closed lower by 0.31% and 0.3%, respectively.
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