Download App

[Earnings Season Starts Divergent, Market Hesitant Ahead of CPI] ⑴ US stocks diverged in pre-market trading on Tuesday. Dow Jones futures fell nearly 1%, S&P 500 futures dipped slightly, while Nasdaq 100 futures rebounded slightly by about 0.4%, with the technology sector showing signs of stabilization after a significant correction the previous day. ⑵ Earnings from major Wall Street firms failed to boost the financial sector. Despite profit growth, JPMorgan Chase and Bank of America shares fell by about 3% and nearly 1%, respectively. Investors are closely scrutinizing earnings details, attempting to glean early signals of the economy's health. ⑶ IBM's stock plunged about 17% after preliminary revenue forecasts fell short of market expectations, dragging down Oracle, ServiceNow, and other software peers, with declines ranging from 2% to 7%, making it the weakest sector in pre-market trading. ⑷ The market is focused on the upcoming CPI data. While inflationary pressures are expected to ease, escalating geopolitical tensions could push up energy costs again, creating uncertainty about the future inflation path. Analysts believe that geopolitical risks will have an impact on market sentiment no less significant than the data itself. (5) Federal Reserve officials previously signaled a hawkish stance, mentioning that further policy tightening might be possible if inflation continues to exceed the target. Currently, market expectations for a 25 basis point rate hike this month remain around 40%. Coupled with oil prices rising to a four-week high, overall risk appetite is suppressed. (6) The chip sector attempted to stabilize after a sharp decline, with related ETFs rising over 2%. Some funds flowed back into previously significantly corrected technology sub-sectors. The market remains cautiously speculative before the data release, awaiting further clues about inflation trends and policy paths.