US stock futures remained stable after a lackluster performance during the last few trading sessions as markets reassessed the previously overly optimistic expectations about a potential start in interest rate cuts in March.
The release of the FOMC minutes yesterday weighed on expectations to a certain extent as it reaffirmed the Fed’s intention to maintain the level of its interest rates for longer than anticipated by the market.
Treasury Yields have stabilized as a result and could add some weight to the stock market.
This week traders could focus on PMI and labor market data, which could help evaluate the health of the US economy, potentially influencing market expectations of an earlier rate cut.
US stocks might experience some volatility as traders react to these data releases. In light of last year’s strong rally, the market could remain exposed to potential price corrections.
The real estate sector, which is sensitive to interest rate changes, was affected by the recent uptick in treasury yields, resulting in a 2.35% loss yesterday.
Mega caps have also seen corrections, led by Apple, which experienced a loss this week following a downgrade from Barclays and could continue to slide in the face of the company’s legal challenges.
Additionally, Meta could remain under pressure after Mark Zuckerberg’s sale of $428 million worth of Meta stock in the final two months of 2023. On the other hand, the energy sector could continue to benefit from rebounding oil prices as geopolitical tensions continue to rise in the Middle East.