Investing.com - Wall Street looked to be bouncing back on Thursday after last session's Fed-led route, with the Bank of England the next central bank to deliver policy decisions. Apple is sticking with Chinese partners for its AI options, while Micron is disappointed with its guidance.
1. The BOE is the next central bank in line
The central bank parade continues on Thursday, the day after interest rate cuts but a slower pace of monetary easing is projected in 2025.
It is next, later in the session, and, unlike the Fed, is expected to keep interest rates unchanged, taking a very gradual stance to ease the country's monetary conditions.
UK inflation rose to 2.3% last month from 2.6% in November, further away from the Bank of England's 2.0% medium-term target, according to data released earlier this week.
In addition, British wages rose more than expected in the three months to October, raising concerns over underlying inflationary pressures.
Fifty basis points of cuts from the BOE are priced into 2025, with the first 25 bp cut fully due for May. That could change if policymakers feel particularly sanguine after the announcement.
Central bank meetings on Thursday also and .
Norway's central bank is expected to keep rates unchanged, while Sweden's equivalent is likely to cut its key rate by a quarter point.
Interest rates were left unchanged early Thursday, with its benchmark short-term policy rate at 0.25%, as policymakers remained cautious about Japan's economic outlook and inflation path.
The BOJ said it expects consumer price index inflation to pick up in 2025, amid a virtuous cycle of higher wages and increased private consumption.
meets on Friday, and is also widely expected to leave its benchmark lending rates unchanged.
2. Futures rebound after technical-led rout; GDP data is pending
U.S. stock futures edged higher on Thursday, after last session's sharp sell-off on the Federal Reserve's revised outlook for interest rates next year.
By 04:40 ET (08:40 GMT), the contract was up 155 points, or 0.4%, up 20 points, or 0.4%, and up 85 points, or 0.4%.
Major Wall Street indexes fell on Wednesday after the U.S. central bank cut interest rates, but also signaled it would cut interest rates just twice next year, down from the four cuts seen in September's forecast. is likely
The blue chip fell more than 1,000 points, or 2.6%, its 10th straight loss, while falling nearly 3% and slipping 3.6%, its worst day since late July.
Wedbush analysts said the rout still presents a buying opportunity in technology stocks, with artificial intelligence set to drive further gains in the coming year.
The selloff presents an opportunity to own tech champions poised to play in a robust AI revolution in 2025, Wedbsg said in a note issued late Wednesday.
The economic data slate centers around the third-quarter release, which is expected to show that annual growth fell to 2.8% in the quarter, a decline from 3.0% in the previous quarter.
3. Apple sees China partners over AI
Apple (NASDAQ: ) is in talks with local partners, Tencent and ByteDance, about integrating its artificial intelligence models into iPhones sold in China, a key market for the tech giant, Reuters reports.
Apple began rolling out OpenAI's ChatGPT to its devices this month, but China's regulatory requirements mandate that generative AI services receive government approval before public release, forcing Apple to seek local partners for its AI features. does
Apple's discussions with Tencent and TikTok owner ByteDance are at a very early stage, Reuters said, but part of the US company's plans to boost revenue as its market share shrinks in the second-largest economy. is likely to be
4. Micron's leadership disappoints
Micron (NASDAQ: ) stock fell premarket after the chipmaker issued weak second-quarter guidance after the close on Wednesday, disappointing investors despite earnings for the latest period.
The company reported first-quarter earnings ahead of expectations, but it also significantly lowered its outlook for the first quarter of next year as demand for the chips it makes, which power personal computers and smartphones, has weakened. are used for
Shares of Micron are up more than 20% so far this year, but were tipped to trade 16% lower on Thursday, with its guidance suggesting that while enthusiasm for artificial intelligence remains strong, the semiconductor is struggling out of sales.
5. Oil slips on a hawkish fade
Crude oil prices fell on Thursday on demand concerns after the Federal Reserve became more cautious, potentially curbing growth in the world's biggest consumer.
By 03:40 ET, US crude futures (WTI) were down 1.4% at $69.62 a barrel, while the contract was down 0.5% at $73.00 a barrel.
Traders fear that global economic growth will cool in the wake of the Federal Reserve meeting with relatively high rates, curbing demand.
The US dollar also rose, climbing to a two-year high, which puts pressure on the oil complex by making the commodity more expensive for international buyers.
Also, official data on Wednesday showed that US crude stocks fell by 934,000 barrels in the week to Dec. 13, compared with expectations for a 1.6 million-barrel draw.