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Traders are currently pricing in rate cuts worth 48 basis points
from the Fed by the end of 2024, with the first cut seen either
in September or November, according to LSEG's rate probability
app. In recent weeks, traders had priced in just one cut due to
signs of sticky inflation.
U.S. stock indexes appear to have stabilized after a rocky
April, as a much better-than-expected first-quarter earnings
season and hopes of U.S. monetary policy easing drew buyers back
into the market.
The Fed last week left interest rates unchanged and signaled it
was leaning toward eventual reductions in borrowing costs, but
repeated that it wants to gain "greater confidence" that
inflation will continue to fall before cutting rates.
Richmond Fed President Thomas Barkin and New York Fed President
John Williams are scheduled to speak later in the day, kicking
off speeches from a host of U.S. central bank officials this
week.
Key data for the week includes weekly jobless claims and U.S.
consumer sentiment data for May.
At 5:44 a.m. ET, S&P 500 e-minis were up 13.25 points, or 0.26%.
Nasdaq 100 e-minis rose 41.25 points, or 0.23%, while Dow
e-minis climbed 88 points, or 0.23%.
Apple dipped 0.8% in premarket trading after the value of
Berkshire's stake in the iPhone maker fell 22% to $135.4 billion
as of March 31 from $174.3 billion at the end of 2023.
Paramount Global added 4.7% after the media company ended its
exclusive negotiations with Skydance Media without a deal,
allowing the special committee to entertain other offers from
rival bidders.
Perficient jumped 54% after Swedish private equity firm EQT AB
said it would take the U.S.-based digital consultancy firm
private in an all-cash deal valued at about $3 billion.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak
Dasgupta)
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