Stocks Set for Muted Open as Bond Yields Climb, Key U.S. Economic Data Awaited

Economic Data - The University of Michigan's preliminary U.S. consumer sentiment index rose to a 6-month high of 57.3 in February, exceeding expectations of 55.0 [1] - U.S. consumer credit increased by $24.05 billion in December, surpassing the expected $9 billion [1] Stock Market Activity - Wall Street's major equity averages closed sharply higher, with the Dow reaching a new all-time high [2] - Chip stocks rallied, led by Nvidia's CEO stating that demand for AI is "incredibly high," with ARM Holdings surging over +11% and Nvidia climbing more than +7% [2] - Cryptocurrency-exposed stocks saw significant gains, with Bitcoin's price increasing over +11%, leading to a +26% rise in Strategy (MSTR) and over +22% in MARA Holdings (MARA) [2] - Bill Holdings (BILL) surged over +37% after raising its full-year guidance and reports of acquisition talks [2] - Amazon.com (AMZN) was the top percentage loser on the Dow and Nasdaq 100, sliding more than -5% after announcing a $200 billion AI infrastructure investment [2] Upcoming Economic Focus - Investors will focus on key U.S. economic data, including employment and inflation figures, comments from Federal Reserve officials, and earnings reports from high-profile companies [3][8] - The January jobs report is set to be released on Wednesday, with revisions expected to show a significant markdown in hiring pace [8] - January CPI data will be released on Friday, with investors looking for evidence of a downward trend in inflation [8] Federal Reserve Insights - Fed Vice Chair Philip Jefferson expressed cautious optimism about the U.S. economic outlook, suggesting strong productivity growth could help bring inflation back to the 2% target [6] - Atlanta Fed President Raphael Bostic emphasized the need for restrictive policy to control inflation, despite recent downbeat hiring reports [6] - U.S. rate futures indicate an 84.2% probability of no rate change and a 15.8% chance of a 25 basis point rate cut at the March Fed meeting [7] Corporate Earnings - Fourth-quarter corporate earnings season is ongoing, with expectations for S&P 500 companies to post an average +8.4% increase in quarterly earnings for Q4 compared to the previous year [10]