| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 44,627.59 | 71.25 | 0.16% |
| S&P 500 | 6,144.15 | 14.57 | 0.24% |
| Nasdaq | 20,056.25 | 14.99 | 0.07% |
| VIX | 15.27 | -0.08 | -0.52% |
| Gold | 2,949.60 | 0.6 | 0.02% |
| Oil | 72.18 | 0.33 | 0.46% |
US MARKET
US equity futures edged lower on Monday following a sharp sell-off last Friday, where the S&P 500 dropped 1.5% and the Nasdaq 100 declined 1.6% after the release of robust jobs data. Treasury yields also climbed, with the 10-year yield rising by seven basis points to 4.76%, a level last seen in 2023.The US dollar traded within tight ranges after strengthening against most major currencies on Friday, pushing a key index of dollar strength to a two-year high.
Investors are now turning their attention to key inflation data scheduled for release this week, including the Consumer Price Index (CPI) on Wednesday, producer prices on Tuesday, and jobless claims on Thursday. These reports are expected to provide further insights into the economy following the stronger-than-expected nonfarm payroll data released last week.
December’s US jobs report showed employment growth at its highest level in nine months, with the unemployment rate unexpectedly falling. This has led to a reassessment of Federal Reserve policy expectations, with some major banks revising their forecasts.
Bank of America, for example, has dropped its expectation of two rate cuts this year and now sees the possibility of a hike. Citigroup continues to predict five rate cuts but expects them to begin in May, while Goldman Sachs forecasts two cuts instead of three.
“Investors may need to prepare for heightened market volatility as expectations for Federal Reserve rate cuts are recalibrated,” said Gina Bolvin of Bolvin Wealth Management Group.
Key US economic events this week include CPI, retail sales, and import prices, alongside initial jobless claims and corporate earnings reports from major players like Bank of America and Morgan Stanley.
Australian shares are expected to begin the week on a negative note following a surprising surge in US job creation, which has dampened hopes for an imminent interest rate cut by the Federal Reserve. S&P/ASX 200 futures dropped 71 points, or 0.9 per cent, during US trading. Meanwhile, the Australian dollar declined by 0.8 per cent to US61.44¢ – its lowest point since the pandemic in 2020 – as the US dollar strengthened.