Jerome Powell's latest remarks calm markets with no rate hikes expected. Oil rebounds as the dollar weakens; stock futures rise ahead of earnings.
Federal Reserve's Stance Calms Market Fears
Federal Reserve Chair Jerome Powell’s latest comments during the central bank policy meeting injected optimism into the markets. By maintaining interest rates and recognizing the extended timeline needed to curb inflation, Powell provided a sense of stability. His assurance that interest rate hikes are off the table for the year was a crucial relief for investors, buoyed by recent strong inflation data. Analysts now foresee potential rate cuts in autumn, assuming inflation remains controlled, enhancing market confidence.
Premarket Movers
| Company | Exchange:Ticker | Price Change | Event Description |
|---|---|---|---|
| Moderna | NASDAQ:MRNA | Rose 1.4% | Narrower-than-expected loss for Q1, cost-cutting success, and strong Covid vaccine sales. |
| DoorDash | NASDAQ:DASH | Slumped more than 11% | Disappointing annual profit outlook, higher costs offsetting gains from increased orders. |
| Carvana | NYSE:CVNA | Surged 35% | Forecast a surprise rise in current-quarter retail sales and core profit, benefiting from high-interest rates. |
| Qualcomm | NASDAQ:QCOM | Rose 5.6% | Forecast quarterly sales and adjusted profit above expectations, boosted by sales of advanced chips. |
| Peloton | NASDAQ:PTON | Rose 7.5% | announced the departure of CEO Barry McCarthy amid a continued stock slide. |
| Shell | LON:SHEL | Rose 1.1% | Reported Q1 profit of $7.7 billion, surpassing expectations, and announced a $3.5 billion share repurchase. |
| Fastly | NYSE:FSLY | Slumped 34% | Provided lower-than-expected guidance for Q2 and full year 2024, citing revenue reductions from major customers. |
| eBay | NASDAQ:EBAY | Fell 3.4% | Forecast Q2 revenue below estimates due to cooling demand. |
Oil Prices Rebound
Following a decline, crude oil prices saw a recovery, influenced by a weakening U.S. dollar post-Fed meeting. With U.S. crude and Brent crude rising to $79.73 and $84.25 respectively, the cheaper dollar has made oil more affordable internationally.
However, the uptick in prices was moderated by a recent build-up in U.S. crude inventories and geopolitical developments in the Middle East that might ease supply fears.
Stocks on the Rise
U.S. stock futures experienced gains as the market absorbed the Federal Reserve's latest decisions. The upbeat mood was reflected in significant increases across major indexes, with Dow futures up by 0.5%, and Nasdaq 100 futures by 0.9%.
This positive trend is in stark contrast to last month's poor performance and is further supported by upcoming corporate earnings releases and economic data, which include jobless claims and worker productivity.
The market is poised for further reactions as it anticipates earnings reports from major companies such as Moderna, Peloton, and Apple. These results, combined with economic data, will likely guide investor sentiment in the coming days.
