Stocks Set to Open Lower as AI Jitters Linger, Fed Minutes and U.S. Economic Data Awaited

Economic Data - The U.S. consumer prices rose by +0.2% month-over-month in January, which is weaker than the expected +0.3% and marks the smallest gain since July [1] - Year-over-year headline inflation decreased to +2.4% in January from +2.7% in December, also below the expected +2.5% [1] - The core CPI, excluding food and fuel prices, increased by +0.3% month-over-month and +2.5% year-over-year in January, aligning with expectations [1] Market Performance - Wall Street's major equity averages closed mixed, with software stocks like CrowdStrike Holdings rising over +4% and ServiceNow gaining more than +3% [2] - Cryptocurrency-exposed stocks surged after Bitcoin's price rose over +4%, with Coinbase Global jumping over +16% [2] - Applied Materials advanced over +8% after reporting better-than-expected FQ1 results and issuing strong FQ2 guidance [2] - Constellation Brands slumped more than -8% after announcing a CEO succession [2] Federal Reserve Insights - The CPI report is not expected to change the Fed's near-term outlook, with potential for further easing later this year contingent on a convincing decline in inflation [6] - Chicago Fed President indicated that interest rates could be lowered if inflation trends towards the 2% target, but currently, it remains around 3% [6] - U.S. rate futures indicate a 92.2% chance of no rate change and a 7.8% chance of a 25 basis point rate cut at the March Fed meeting [7] Corporate Earnings and Reports - Notable companies reporting earnings this week include Walmart, Palo Alto Networks, and Booking Holdings, among others [11] - Quarterly 13F filings from major investors like Berkshire Hathaway are expected to provide insights into fourth-quarter portfolio changes [11] Global Market Trends - The Euro Stoxx 50 Index is attempting to stabilize after volatility due to AI concerns, with utilities and healthcare stocks advancing [13] - The U.K. unemployment rate rose to 5.2%, and Germany's annual inflation rate increased to 2.1% in January [14] - Japan's Nikkei 225 Index closed lower amid profit-taking and concerns over AI disruption, while Japan's bond market saw increased demand [16][17]