- US market futures fell as investors assessed company earnings prospects against expectations that the Federal Reserve may lower the rate hike pace as inflation slows.
- After a volatile day on Wall Street that caused the Nasdaq to have its worst day since December 22, futures on the S&P 500 and Nasdaq 100 fluctuated before turning down. Treasury yields decreased and the dollar grew.
- In premarket trade, chipmakers were the biggest losers, with NXP semiconductors NV falling more than 4% on a dismal first-quarter outlook. Exxon Mobil, Caterpillar, and Pfizer all saw losses following disappointing earnings. Positively, General Motors increased more than 5% after releasing predictions that exceeded analysts' expectations.
- Investors hoping that the Fed will scale back its aggressive rate-hike cycle are facing challenges due to signals of profit pressure: data provided shows that predictions for S&P 500 earnings per share have decreased since high in June 2022, while estimates for revenue have stagnated. As pricing power is lost due to declining inflation, profits are under pressure.
