US actions, Fed and Copom decisions on interest rates and oil price are among the topics
Settlements stabilized in the previous session, in the wake of sharp falls earlier this week, which were inspired by a new Chinese AI (Artificial Intelligence) model. Several major technology companies should publish quarterly results after closing bell, while investors will also keep an eye on the announcement of the Fed (Federal Reserve, US Central Bank) interest rate.
Meanwhile, the Dutch manufacturer of ASML chips informs a solid demand in the 4th quarter and Louis Vuitton, Titan of luxury products, reveals a disappointing growth of sales. In Brazil, the Copom defines the interest rate on Wednesday (29.Jan.2024).
1.
Nasdaq 100 futures and S&P 500 futures rose on Wednesday (29.jan), with investors awaiting the main profits of high capitalization technology companies and a decision on the interest rate of the Fed- all these as they evaluated the consequences of a Strong settlement earlier this week, caused by a low -cost AI model of Chinese startup DeepSeek.
At 7:57 am (from Brasilia), Nasdaq 100’s future contract had won 0.37%, the S&P 500 future contract had risen 0.08%, and Dow Futures lost 0.03%.
All 3 rates ended up on the 3rd (28.jan). In particular, the High Technology Index Nasdaq compound advanced 392 points, or 2.0%, recovering some losses recorded on Monday (27.Jan), resulting from fears that the emergence of the DeepSek model could make massive spending unjustified unjustified model of large technology companies with AI.
Nvidia’s actions (Nasdaq: NVDA), one of Nasdaq’s main drivers, rose 8.9% after a sharp drop on Monday (27.jan), which eliminated a $ 593 billion Wall Street record in its market value.
“The narrative of consensus aggressively retreated about the negativity linked to DeepSeek, [com] Some discarding the product and concerns arising from its detrimental impact on the Capex of the sector, while others praised it, predicting that it would cause an acceleration in demand ”Vital Knowledge analysts said in a note to customers.
The focus now turns to a series of quarterly results from leading technology participants – and recent stock market drivers – this week.
The Microsoft Software Giant (Nasdaq: MSFT), the Platforms Meta (Nasdaq: Meta), owner of Facebook, and Tesla (Nasdaq: Tsla), manufacturer of electric vehicles, must present their reports after the closing of Wall Street in this 4th Fair (29.Jan), followed by Apple (Nasdaq: AAPL), manufacturer of iPhone, on Thursday (30.jan).
The 4 groups are part of the so -called set Magnificent 7 of large technology companies that have sustained strong gains in stock markets for most of the last 2 years.
AI will probably be a central topic for analysts when analyzing the numbers, especially after the defeat of DeepSeek -inspired actions on Monday (27.jan). Silicon Valley executives have previously declared their intention to pay billions of dollars to develop their AI infrastructure, all in an attempt to eventually monetize nascent technology.
However, some doubts about spending has arisen since the DeepSeek AI model, which was made with lower capacity chips and about only $ 6 million, gained popularity. Investors may be interested in listening to what technology industry leaders have to say about it, analysts say.
2.
The Fed is expected to leave interest rates unchanged after its last 2-day meeting on Wednesday (29.jan).
In a note to customers, the analysts of the English argued that the Fed would need to observe a “Significant weakness” In the American economy, as well as lower inflation, to justify the reduction of interest rates of its current range of 4.25% to 4.5%.
“At the moment, the job market and wages are gradually cooling, but not enough to resume flexibility.”they added. According to market pricing, the conditions for a reduction will not be met until June, they observed.
Instead, attention can focus on the press conference of Fed President Jerome Powell, with observers predicting that he will be asked to comment on this week’s stock market turbulence and the central bank’s independence from the political pressure of the US President Donald Trump (Republican).
3. ASML and LVMH Report
Investors were driven on Wednesday (29.Jan) for the strong results of the Dutch giant of semiconductors ASML (ASML), helping the feeling after the global fall of technology earlier this week.
The price of ASML (ASML) stocks rose 10% after the largest supplier of computer chip manufacturing equipment registered a much better demand than expected for its most advanced tools in the 4th quarter, even with the model of Low cost of Deepseek raising worries about AI spending.
Elsewhere, LVMH (Louis Vuitton) shares fell 4%, as the giant’s giant sales growth could not impress, after a series of solid rivals and recent price gains.
Remy Cointreau’s shares (EPA: RCOP) also fell after the French beverage manufacturer said it now expects the group’s sales decline for the full year of 2024 and 2025 to be close to 18%at the lower end of its Guidance goal, citing the lack of visibility around the moment of a recovery of demand in the US and the worsening of market conditions in China.
4. Petroleum
Oil prices fell on Wednesday (29.jan), after an increase in US oil stocks weighed on prices, increasing concerns about global growth already exacerbated by the possible impact of President Trump’s comprehensive tariff plans.
At 8:01 am, US oil futures (WTI) fell 1.02%to $ 73.02 per barrel, while the Brent contract fell 1.01%to
US oil inventories grew by 2.86 million barrels last week, according to data from the sector’s American Petroleum Institute, after 9 consecutive weeks of falls, as cold climate increased the demand for heating and Travel activity grew during the holidays.
Energy Information Administration, the US Department of Energy Statistical Arm, is expected to disclose its weekly report at the end of the session.
Oil reference values fell to minimums of several weeks earlier this week, harmed by concerns about increased US production, Trump management plans to impose commercial tariffs on china’s major economy and economic data.
5. Copom defines interest
The Central Bank’s Copom (Monetary Policy Committee decides on Wednesday (29.Jan) the Selic interest rate level, with the market expectation of an increase of 100 base points, as forward guidance From the last meeting, which anticipated two new highs in the same magnitude. Each PB (base point) corresponds to 0.01 percentage point.
For the May meeting, however, the market is divided, according to BTG survey (BVMF: BPAC11) with portfolio managers, traders, economists and strategists from financial institutions. The study shows that there would be division between a 50PB or 75PB increase in May, with a predominance slightly to 75 PB.
100-base adjustment cycles are not very common, according to Itaú report (BVMF: ITUB4), but an average pace between 50 and 75 PB, with median rhythm at 50 PB.
“The committee usually starts with movements between 25 and 50 pb., Even the rhythm when it usually closes the loose cycles or monetary tightening”clarifies the bank.
With information from
