Jan 16, 2024: US stock futures indicated a negative opening on Tuesday as Wall Street prepared to resume trading after the Martin Luther King Jr. holiday. Investors are focused on upcoming earnings reports from major banks, with Goldman Sachs and Morgan Stanley in the spotlight. Both banks heavily rely on their investment banking divisions, and market attention will be on the performance of these operations in the final months of 2023. Last week, JPMorgan reported a “robust” pipeline for its investment banking unit and saw a surge in investment banking fees, reflecting optimism for potential interest rate cuts by the Federal Reserve.
Additionally, traders are eagerly awaiting a speech from Federal Reserve Governor Christopher Waller later on Tuesday, which could offer insights into the central bank’s policy approach in the coming months. Despite a more dovish interest rate forecast in December, several Fed officials have tempered expectations of imminent rate cuts, emphasizing the need for evidence that inflation is steadily cooling to the 2% target. Waller’s comments, traditionally more hawkish, will be closely watched for any indications about inflation and rate expectations. His speech is scheduled for 11:00 ET (16:00 GMT) at the Brookings Institution in Washington, D.C.
