U.S. Stock Futures Rebound

by Warren Seah

Dow Jones Industrial Average (YM00) futures saw a 0.2% increase, corresponding to a rise of 77 points to 35,508. Similar gains were observed in the S&P 500 (ES00) futures, which rose by 0.4% or 16 points to reach 4,580. Meanwhile, the Nasdaq 100 (NQ00) futures experienced a more substantial increase of 0.7% or 101 points, reaching 15,672.

In yesterday’s trading session, the Dow Jones Industrial Average (DJIA) experienced a decline of 0.67%, corresponding to a drop of 237 points to 35,283. Similarly, the S&P 500 (SPX) declined by 0.64%, equating to a loss of 29 points and settling at 4,537. The Nasdaq Composite (COMP) also experienced a decline of 0.55%, with a decrease of 77 points to 14,050.

Today, investors are eagerly awaiting the release of two significant inflation indicators: the PCE price index, which is the Federal Reserve’s preferred measure of inflation, and the employment cost index (ECI) for the quarter. Both releases are expected at 8:30 a.m. Eastern time.

Market expectations indicate that the core PCE price index will show a monthly increase of 0.2%, while the employment cost index is anticipated to climb by 1.1%.

Chris Turner, the global head of markets at ING, suggests that a weak ECI number could potentially impact the U.S. tightening cycle projections for the year and potentially impact the value of the dollar.

In addition to these economic indicators, investors are also keeping an eye on the ongoing earnings season, with companies like Exxon Mobil (XOM) and Procter & Gamble (PG) anticipated to release their results.

Meanwhile, in Japan, the latest Bank of Japan decision is also receiving attention. The central bank’s move, which allowed bond yields (TMBMKJP-10Y) to exceed the previous boundary of 0.5% and go as high as 1%, has sparked speculation about potential policy normalization.

Overall, the market remains watchful of these key economic releases and corporate earnings results as they provide insights into the current state of inflation and monetary policy dynamics.

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