Market Update: US Equity Futures Slip as Traders Await Economic Data and Fed Policy Insights

The stock market is on edge as US equity-index futures slip and Treasury yields inch higher, all eyes are on economic data that will determine the Federal Reserve’s next moves. Investors are eagerly awaiting reports on economic growth and weekly unemployment claims, which will provide crucial insights before tomorrow’s key inflation figures.

Fed Governor Michelle Bowman’s recent comments dampened market expectations for interest rate cuts, resulting in a surge in the dollar. Andrew Brenner, head of international fixed income at NatAlliance Securities LLC, highlighted that the Fed’s stance of “higher for longer” is drawing money into the US, keeping rates high and the dollar strong.

Micron Technology Inc.’s disappointing sales outlook served as a reminder of the risks associated with relying on artificial intelligence chip makers to drive stock prices. The company’s shares plummeted in premarket trading, dragging down tech giants like Nvidia Corp.

Meanwhile, in Europe, traders are in a holding pattern ahead of Sunday’s French elections. Hennes & Mauritz AB, a popular fashion retailer, saw its stock nosedive more than 14% after missing earnings expectations. GSK Plc also faced setbacks as US health officials delivered a blow to its RSV vaccine. On the bright side, Gucci owner Kering saw a boost after receiving a double-upgrade from Bank of America Corp.

Stocks across Asia, including Japan, Hong Kong, South Korea, and China, all saw declines, putting the MSCI Asia Pacific gauge on track for its first loss in three days. The yen, which had weakened significantly on Wednesday, regained some ground.

In the commodities market, gold stabilized after a two-day decline, while oil traded within a narrow range awaiting US economic data. Iron ore prices showed signs of strength, supported by increased Chinese demand following new property measures in major cities.

Key events to watch this week include data releases like US durable goods, initial jobless claims, and GDP, as well as earnings reports from companies like Nike. With so much at stake, traders are keeping a close eye on market indicators and economic updates to navigate the unpredictable financial landscape.