Market may face some correction as Fed officials and development in big tech companies do not look friendly now.
Federal Reserve Governor Christopher Waller emphasised that there is no urgency to lower interest rates, citing recent economic data as grounds for delaying or reducing the number of cuts projected for this year.
He expressed disappointment with recent inflation figures and stated his desire to see improved inflation data over the next couple of months before considering a cut. Waller pointed to the strength of the economy and robust hiring as additional reasons why the Fed can afford to wait, aiming to gain confidence that inflation is steadily moving towards the 2% target.
Apple: Near-term bearish as sales in China doesn’t look well
In China, official data revealed a significant decline of approximately 33% in iPhone shipments in February compared to the previous year, extending a trend of decreased demand for Apple's flagship device in its crucial overseas market. The figures indicated that foreign brands shipped only about 2.4 million smartphones last month, with Apple constituting the majority of those shipments.
This marks the second consecutive month of reduced shipments, following a 39% drop in January compared to the prior year, according to China Academy of Information and Communications Technology.
Tesla: Near-term bearish due to disappointing report
Anticipation surrounds the upcoming release of electric vehicle maker's first-quarter delivery numbers, with recent estimates suggesting a disappointing report due to tepid demand for its cars in the coming months. Despite potential modest beats in expectations, investor confidence in the company has been dampened by significant cuts in delivery estimates.
Nvidia: Less bullish as increasing competition from the industry
Nvidia's remarkably high profit margins stand out as a significant draw for potential competitors eyeing the semiconductor market. The company has solidified its foothold in the industry, bolstered by its software ventures, which have contributed substantially to its success. However, the allure of Nvidia's profitability acts as a beacon for other players looking to capitalise on the lucrative opportunities within the sector.
Fullerton Markets Research Team
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