Bonds & Stocks
US equity futures wavered as the busiest week of the earnings season gathered momentum, with hopes for a sustained rally hinging on whether big tech can justify lofty valuations inspired by the artificial intelligence boom. Contracts on the S&P 500 and Nasdaq 100 erased modest gains to trade little changed after Wall Street’s rebound from a $2 trillion selloff.
Economy
A run of hot US data and a string of hawkish remarks by Fed Chair Jerome Powell has led our colleagues in the US to ax two cuts from the Bloomberg Economics forecast for the federal funds rate this year. While the prospect of a higher-for-longer Fed adds some anxiety about euro weakness and inflation, we do not think it will alter the European Central Bank’s trajectory.
World
Apple Inc.’s iPhone sales in China fell 19% during the March quarter, according to data from an independent research firm that marked the gadget’s worst performance there since Covid struck around 2020. The US company fell to third in the hotly contested market, roughly on par with fast-rising rival Huawei Technologies Co., according to Counterpoint Research estimates. The market as a whole expanded about 1.5% as local brands including Honor Device Co. and Xiaomi Corp. led growth.