Middle East deadlock
SPY•Key developments
- Developments in the Middle East
- U.S. earnings including CoreWeave, Super Micro Computer
- Reopening of 5-year German government debt auction
Earnings and FX developments to watch
On the U.S. earnings front, CoreWeave CRWV.O is expected to report a sharp jump in second-quarter revenue as the company sees a surge in demand for its AI cloud services amid massive data centre spending by tech companies, with investors focused on the outlook and investment plans for the year.
Speaking of AI, Nvidia NVDA.O said on Monday it has partnered with six major financial institutions to launch compute financing platforms aimed at raising more than $500 billion in third-party capital for AI infrastructure, underscoring the scale of the sector's investment boom.
And over in foreign exchange land, the yen JPY= was back in the spotlight as the Japanese currency stood on the weaker side of 159 against the dollar, giving up some of its intervention gains.
Inflation data and Fed comments in focus
Stocks drifted in Asia, as continued tensions in the Middle East and prolonged uncertainty over the global inflation outlook sapped market sentiment, though key will be Wednesday's U.S. inflation data, which will provide clues on the Federal Reserve's next rate move.
Overnight, Cleveland Federal Reserve Bank President Beth Hammack said she feels the time is now to start raising interest rates gradually, so as to avoid needing to raise rates more sharply later.
The data calendar for the day ahead is light, so the focus will be on developments in the Middle East.
