Stocks Set to Open Higher as Bond Yields Fall, Fed Meeting and Middle East Conflict in Focus

Market Overview - Wall Street's major equity averages ended in the red, with Meta Platforms (META) leading the decline, falling over -3% due to the postponement of its next AI model release [1] - Ulta Beauty (ULTA) dropped more than -14% after issuing below-consensus FY26 guidance for comparable sales growth and EPS [1] - Adobe (ADBE) fell over -7% following the resignation of its long-time CEO, overshadowing better-than-expected FQ1 results [1] - Conversely, chip and AI-infrastructure companies saw gains, with Sandisk (SNDK) rising more than +6% and Micron Technology (MU) increasing over +5% [1] Economic Indicators - The core PCE price index rose +0.4% month-over-month and +3.1% year-over-year in January, aligning with expectations [5] - U.S. JOLTs job openings increased to 6.946 million in January, surpassing expectations of 6.760 million [5] - Personal spending in the U.S. rose +0.4% month-over-month, exceeding expectations of +0.3% [5] - Q4 GDP growth was revised downward to +0.7% (quarter-over-quarter annualized) from an initial estimate of +1.4% [5] Federal Reserve Insights - The Federal Reserve is expected to keep the Fed funds rate unchanged in a range of 3.50% to 3.75% for a second consecutive meeting [7] - Market watchers are keen on signals regarding future rate cuts amid the ongoing Middle East conflict and its potential economic impact [7] - Economists anticipate a "nuanced assessment" from Fed Chair Jerome Powell regarding inflation and unemployment risks stemming from the conflict [8] Corporate Earnings - Several prominent companies, including Micron Technology (MU), FedEx (FDX), and Accenture (ACN), are set to release quarterly results this week [10] - Investors are particularly focused on U.S. Industrial Production and Manufacturing Production data, with projections indicating a rise of +0.1% month-over-month for both in February [11] International Market Reactions - The Euro Stoxx 50 Index decreased by -0.25% as investors reacted to conflicting headlines regarding the Middle East conflict [13] - Japan's Nikkei 225 Index closed lower, with Goldman Sachs lowering its 2026 GDP growth forecast for Japan to 0.5% from 0.8% due to geopolitical risks [18] - China's Shanghai Composite Index also closed lower, although positive economic data indicated a stable start to the year [15][16][17]