.jpg)
Check back for updates throughout the trading day
US stock futures were mixed in early trading on Monday, with Treasury yields steady, as investors entered the final week of a challenging second quarter focused on a headline inflation reading and a resilient domestic economy.
The S&P 500 had a second-quarter gain of about 4% and was up more than 10% from its mid-April low. These moves came largely on the back of huge gains for giant technology stocks like Nvidia (NVDA) hail (Camel) And renewed bets on an interest rate cut by the Federal Reserve linked to easing inflation pressures.
Investors will pass the tests of both these drivers this week with Micron Technology’s May quarter earnings (in) a major player in the AI memory market, is scheduled for release on Wednesday, and the Fed’s preferred measure of inflation, the Personal Consumption Expenditures Price Index, is due on Friday.
Headline and core PCE inflation rates are expected to ease to around 2.6% for May, which would be the slowest annual rates since March 2021 and likely boost market bets on a Fed rate cut in the fall.
At present, CME Group’s FedWatch suggests a 66% chance of a quarter-point cut in September, with similar odds for a subsequent move before the end of the year.
In the bond market, benchmark Treasury yields stabilized a week before coupon auctions worth $183 billion over the next five days. Yields rose last week after S&P Global Purchasing Managers’ Index (PMI) data showed June business activity jumped to the fastest pace in more than two years.
Ten-year Treasury yields were last seen at 4.255%, with two-year notes pegged at 4.734% ahead of tomorrow’s $69 billion auction.
The US dollar index, which tracks the US currency against a basket of six global currencies, was down 0.22% at 105.566.
As the start of the trading day approached on Wall Street, futures contracts tied to the S&P 500 Index, which had risen in eight of the past nine weeks, were priced for a 6-point gain.
Meanwhile, futures linked to the Dow Jones Industrial Average point to a 92-point advance, while contracts linked to the tech-focused Nasdaq point to a 12-point decline.
Stocks that are moving include Boeing (Bachelor’s) which fell 0.63% in premarket trading amid reports that US prosecutors are recommending that the Justice Department file criminal charges against the aircraft manufacturer linked to fatal crashes in 2018 and 2019.
In overseas markets, the European Stoxx 600 rose 0.39% in Frankfurt as investors focused on parliamentary elections in France later in the week, while Britain’s FTSE 100 rose 0.39% in early trading in London.
More from Wall Street analysts:
- Analyst updates price target for Oracle stock price after earnings
- Analyst reruns price target for Trade Desk stock price after Netflix deal
- Analysts adjust price targets for Micron stock ahead of earnings
Overnight in Asia, currency traders were on watch for intervention, as the yen fell to the 160 level against the US dollar, a weakness that could lead to massive yen buying from the Bank of Japan.
The Nikkei 225 finished 0.54% higher in Tokyo, with export stocks leading the advance, while the MSCI ex-Japan regional index fell 0.49% at the close of trading.
RELATED: Best Single Trade: Wall Street Veteran Picks Palantir Stock
