Title: CrowdStrike Soars on Strong Profit Report, Wall Street Eyes Federal Reserve’s Next Move
CrowdStrike, a cybersecurity company, saw its stock jump 15.3% after reporting stronger profits for the latest quarter than analysts had expected. The company also provided a forecast for upcoming profits that exceeded Wall Street’s estimates, leading to a surge in its stock price.
Meanwhile, Nvidia and Meta Platforms were among the top performers on the S&P 500, with Nvidia rising 2.6% and Meta Platforms rebounding 0.9% after a previous slide. These tech giants, along with other Big Tech stocks, have been driving the S&P 500 to record highs, but the high expectations have also led to some recent drops in the market.
Federal Reserve Chair Jerome Powell’s comments on interest-rate policy also influenced the market, with Treasury yields edging lower as he spoke before a House of Representatives committee. Powell hinted that the next move by the Fed could be a rate cut later this year, but emphasized the need for greater confidence in inflation moving toward the target of 2%.
Traders are now looking towards June as a potential timeline for a rate cut, as expectations for a cut in March have been shelved. The release of the “Beige Book” later in the day will provide further insight into the state of the economy.
On the flip side, Foot Locker and Nordstrom saw declines in their stock prices despite reporting stronger profits for the latest quarter. Foot Locker tumbled 26.3% as it announced it would not be resuming its dividend, while Nordstrom fell 13.9% after providing a forecast for upcoming profits that fell short of analysts’ expectations.
Overall, the market remains cautious as it awaits further economic data and signals from the Federal Reserve regarding future policy decisions. Stock markets abroad showed mixed movements, with mostly modest changes across Europe and Asia. In China, officials expressed confidence in achieving their economic growth target for the year, despite acknowledging the challenges ahead.
