Economic news

Futures rise ahead of inflation data

2023.06.30 06:41


© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 29, 2023. REUTERS/Brendan McDermid

(Reuters) – U.S. stock index futures rose on Friday, the final trading day of the second quarter, ahead of key inflation data that could influence investor expectations on how long the Federal Reserve will maintain a tight monetary policy.

Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that the U.S. central bank will continue to raise interest rates, but stock markets were buoyant on signs of strength in the U.S. economy.

“The backdrop for equities is still no recession, inflation is sticky and financial conditions are still loose. So unless some trigger emerges, equities will remain bid,” Peter Garnry, head of equity strategy at Saxo Bank, wrote in a morning note.

“Key risks ahead for U.S. equities remain potential expanded export controls on AI chips and the upcoming Q2 earnings season.”

Despite a recent streak of losses, the three main U.S. indexes are on course to end June and the second quarter on a high note as investors expect the Fed’s aggressive tightening will not derail the U.S. economy.

Meanwhile, artificial intelligence (AI)-inspired frenzy in technology and megacap stocks set the tech-heavy Nasdaq for a near 30% gain in the first half – in what could be its best such performance in 40 years.

The Fed’s preferred inflation gauge, the Personal Consumption Expenditure index (PCE) for May, will be released at 8:30 a.m. ET. Economists polled by Reuters expect core rates to remain steady at 4.7%.

Traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup’s Fedwatch tool, up from roughly 72% a week earlier.

The odds of another 25 bps rate also grew to 26%, from 12% last week.

Meanwhile, Treasury yields continued to rise on bets of further rate hikes, with several parts of the yield curve reaching deeper levels of inversion, a sign that bond investors are increasingly worried about an economic slowdown.

The yield on two-year notes, most reflective of short-term rate expectations, touched highest since early March at 4.93%, while benchmark 10-year yield also jumped to March highs at 3.89%. [US/]

At 5:56 a.m. ET, were up 75 points, or 0.22%, were up 14.75 points, or 0.33%, and were up 75 points, or 0.5%.

Nike Inc (NYSE:) fell 3.5% premarket after it forecast first-quarter revenue below Wall Street expectations as cost-conscious consumers in North America cut back on sneaker and sports apparel purchases.

Shares of other footwear makers Foot Locker (NYSE:) Inc and Skechers USA (NYSE:) slipped 0.1% and 1.1%, respectively.

Apple Inc (NASDAQ:) inched up 0.8% after Citigroup (NYSE:) started coverage on the stock with a “buy” rating. If the premarket gains hold, the iPhone maker could hit $3 trillion in market capitalization when markets open.

Carnival (NYSE:) Corp rose 3.0% after Jefferies upgraded the cruise operator’s stock to “buy” from “hold”.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,367.36 0.50%
ethereum
Ethereum (ETH) $ 3,429.48 2.62%
tether
Tether (USDT) $ 1.00 0.01%
solana
Solana (SOL) $ 258.32 0.55%
bnb
BNB (BNB) $ 659.36 2.54%
xrp
XRP (XRP) $ 1.48 5.89%
dogecoin
Dogecoin (DOGE) $ 0.44389 3.49%
usd-coin
USDC (USDC) $ 1.00 0.05%
cardano
Cardano (ADA) $ 1.08 1.11%
staked-ether
Lido Staked Ether (STETH) $ 3,428.64 2.63%
tron
TRON (TRX) $ 0.215457 4.13%
stellar
Stellar (XLM) $ 0.605807 37.32%
avalanche-2
Avalanche (AVAX) $ 42.51 2.53%
the-open-network
Toncoin (TON) $ 6.42 15.74%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 0.16%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,057.13 2.49%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,141.29 0.67%
polkadot
Polkadot (DOT) $ 9.37 31.63%
chainlink
Chainlink (LINK) $ 18.10 8.61%
bitcoin-cash
Bitcoin Cash (BCH) $ 519.63 4.05%
sui
Sui (SUI) $ 3.52 0.10%
weth
WETH (WETH) $ 3,433.26 2.71%
pepe
Pepe (PEPE) $ 0.000021 2.36%
leo-token
LEO Token (LEO) $ 8.62 1.20%
near
NEAR Protocol (NEAR) $ 6.44 4.66%
litecoin
Litecoin (LTC) $ 102.05 0.97%
aptos
Aptos (APT) $ 13.24 5.63%
uniswap
Uniswap (UNI) $ 10.97 8.19%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,614.36 2.68%
hedera-hashgraph
Hedera (HBAR) $ 0.154514 2.63%
internet-computer
Internet Computer (ICP) $ 12.05 9.42%
crypto-com-chain
Cronos (CRO) $ 0.199858 5.20%
usds
USDS (USDS) $ 1.00 0.05%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.589934 12.73%
ethereum-classic
Ethereum Classic (ETC) $ 30.27 3.51%
render-token
Render (RENDER) $ 7.97 4.71%
bittensor
Bittensor (TAO) $ 541.80 3.79%
kaspa
Kaspa (KAS) $ 0.155562 0.51%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.47 12.46%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.10%
cosmos
Cosmos Hub (ATOM) $ 9.40 20.69%
bonk
Bonk (BONK) $ 0.000049 0.81%
arbitrum
Arbitrum (ARB) $ 0.889454 9.52%
filecoin
Filecoin (FIL) $ 6.06 22.97%
whitebit
WhiteBIT Coin (WBT) $ 24.77 0.40%
vechain
VeChain (VET) $ 0.044079 11.80%
dai
Dai (DAI) $ 1.00 0.12%
dogwifcoin
dogwifhat (WIF) $ 3.37 4.55%
mantra-dao
MANTRA (OM) $ 3.72 4.39%
celestia
Celestia (TIA) $ 7.74 31.50%