Michael M. Santiago
Stock index futures lacked firm direction Monday with traders possibly cautious ahead of the inflation data out on Tuesday.
S&P futures (SPX) -0.1% and Dow futures (INDU) -0.3% were lower. Nasdaq 100 futures (NDX:IND) +0.1% were up slightly.
“In 2000 years I’m not sure if $250bn has ever been wiped off a stock in 3 hours before,” Deutsche Bank’s Jim Reid said. “That’s what happened to Nvidia on Friday as the stock went from being around +5% up to -6.5% down intraday before closing -5.55%.”
“Then in after-hours trading on Friday, it was down almost another -3%. Remarkably it was still up +6.38% on the week, +21.3% in March so far, and has still posted a tenth week of consecutive gains.”
“That said, the sell-off late in the week meant the S&P 500 (-0.65% Friday) was down -0.26% for the week, and just missed out on advancing for 17 of 19 weeks for the first time since 1964,” Reid said. “The macro world is still in hock to the Mag-7 so keep an eye out for what happens next, but this week the macro world will have its own things to focus on with US CPI tomorrow.”
Rates are cautious ahead of the February CPI, where the annual rate on core is expected to decline to 3.7%.
The 10-year Treasury yield (US10Y) fell 1 basis point to 4.08%. The 2-year yield rose 1 basis point to 4.49%.
Fed funds futures are pricing in near certainty of no move at the March meeting. The first cut is priced in for June.
