- Wall Street opens lower
- The dollar gains for the third consecutive session
- Bond yields are losing
- Investors await tomorrow's CPI data and FOMC decision in uncertainty
On the day before the FOMC decision and CPI report, emotions in the markets are noticeable. Investors are choosing less risky assets like the USD dollar to wait out the two key events tomorrow. First, the US CPI report will be published, followed by the Fed's decision.
Today, however, marks the start of the two-day meeting. Expectations indicate over a 99% probability of keeping interest rates unchanged. However, investors' attention will focus on Fed Chairman Jerome Powell's speech and the timing of the potential first rate cut this year.
USDIDX (D1 interval, inverted)
The dollar started strengthening last week after the NFP data was published on Friday. The stock market and USD are negatively correlated, so the significant increase in USDIDX in recent days may continue to pressure indexes, including the US500.
Source: xStation 5
US500 (D1 intervals)
Despite nervous market sentiment, the two main indices on Wall Street, US500 and US100, are not showing significant declines. Instead, we can observe price consolidation around historical highs, awaiting a downward or upward catalyst tomorrow.
Source: xStation 5
Company News
Oppenheimer raised Nvidia's (NVDA.US) stock price target to $150 from $110 after its shares began trading post a 10-1 stock split, maintaining an Outperform rating. In the new model analysts reflected the increased share count and introduced CY26 estimates, noting key future product launches and CEO Jensen Huang's recent highlights at Computex 2024.
DXC Technology (DXC.US) gains over 9.00% after reports that Apollo Global (APO.US) and Kyndryl (KD.US) are discussing a joint bid for the information technology services firm, with an expected acquisition offer between $22 and $25 per share. DXC, with a market cap of $3B, is also selling its insurance software business for over $2B and may remain independent.
Source: xStation 5
Yext (YXT.US) fell more than 11% after missing Q1 consensus estimates and providing a disappointing outlook. The company expects Q2 revenue between $98M and $98.4M, below the consensus of $98.4M, and lowered its FY2025 revenue outlook to $394M-$396M from a prior view of $400M-$402M. Yext also announced plans to acquire Hearsay Systems for $125M, with an additional $95M if performance targets are met.
Array Technologies (ARRY.US) drops over 10% after CFO Kurt Wood announced his intention to step down at the end of the second quarter to pursue other business interests.
