US stock futures rise on rate-cut hopes ahead of inflation data
June 27 (Reuters) - U.S. stock index futures climbed on Friday, putting the S&P 500 and the Nasdaq on track for record highs, as investors awaited a key inflation reading amid growing expectations of a dovish monetary policy from the Federal Reserve this year.
Personal Consumption Expenditure data - the U.S. central bank's preferred inflation gauge - for May is due to be released at 08:30 a.m. ET and will be scrutinized for a better understanding of the Fed's interest-rate path as President Donald Trump's tariffs weigh on prices.
As the ceasefire in the Middle East holds, investor focus has turned to the prospect of a dovish Fed after the Wall Street Journal reported that Trump has toyed with the idea of selecting and announcing Fed Chair Jerome Powell's replacement by September or October.
A spate of economic data this week, including a weaker-than-expected first quarter GDP reading as well as jobless claims reaching multi-year highs, has supported the case for the Fed to cut borrowing costs this year.
Traders now price in a 20% chance of a rate cut in July, compared with 12.5% last week, according to CME Group's FedWatch tool.
At 05:25 a.m. ET, Dow E-minis were up 103 points, or 0.24%, S&P 500 E-minis were up 15 points, or 0.24%, and Nasdaq 100 E-minis were up 70.25 points, or 0.31%
Nike's (NKE.N), opens new tab shares rose 9.6% in premarket trading after the retailer forecast a smaller-than-expected drop in first-quarter revenue.
Retailer Lululemon Athletica (LULU.O), opens new tab rose 1.7% after Nike's results.
The benchmark S&P 500 (.SPX), opens new tab and the Nasdaq (.IXIC), opens new tab are on track for their best weekly performance in six weeks while the blue-chip Dow (.DJI), opens new tab is set for a weekly advance, if gains hold.
Adding to the upbeat mood, Washington reached an agreement with China on expediting rare earth shipments to the United States, a White House official said, days ahead of the July 9 deadline for Trump's "reciprocal" tariffs.
Also on tap is the final reading of consumer sentiment for June, measured by the University of Michigan Surveys of Consumers, due at 10:00 a.m. ET.
Remarks from New York Fed President John Williams, Cleveland Fed President Beth Hammack and Fed Board Governor Lisa Cook are expected later in the day.
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Reuters
6 minutes ago
- Reuters
VIEW Wall Street hits record highs after turbulent months
June 27 (Reuters) - The S&P 500 and Nasdaq Composite reached all-time highs at the opening bell on Friday, bouncing back from a turbulent period sparked by U.S. President Donald Trump's trade policies based on tariffs. The U.S. benchmark stock index (.SPX), opens new tab rose 0.68% to 6,182.7 points, surpassing the previous peak of 6,147.43 reached on February 19, while the Nasdaq (.IXIC), opens new tab went up 0.54%, to 20,274.8, also above its December 16 high of 20,204.58. The indexes' records show a shift in investors' sentiment, amid hopes of interest rate cuts, a U.S.-brokered ceasefire between Israel and Iran, tamed prices and trade deals. Days after Trump's tariffs announcement on April 2, during the so-called "Liberation Day," the Nasdaq tumbled 26.7% from its previous peak, entering a bear market. COMMENTS: JAMES ST. AUBIN, CHIEF INVESTMENT OFFICER, OCEAN PARK ASSET MANAGEMENT, SANTA MONICA, CALIFORNIA: "It's a continuation of this monster rally since early April. It's been quite an improbable comeback, and it continues, assuming that the tariff controversy is no longer a major issue in the psyche of the market." "We're starting to see earnings estimates for the next 12 months on the rise again after taking a little bit of a dip and that's what the market is buying into." "The market assumption is that tariffs will be a very manageable issue.' MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NEW YORK: "What we're really witnessing this week is sort of the removal of some of the stumbling blocks that have been placed in the middle of the road. We've had all this trade issues that are still up in the air and we had the big overhang of what was going on in the Middle East." PETER TUZ, PRESIDENT, CHASE INVESTMENT COUNSEL, CHARLOTTESVILLE, VIRGINIA: "Given the uncertainties in the world at the moment, I am surprised. However, one can make the case that the uncertainties are diminishing as the year progresses and that has made people more optimistic about the future." "For a long while this year, we were worried about tariffs. Due to the various negotiations, they don't seem to be as much of a worry as they were a few months ago." "Instead of the Middle East becoming a bigger problem as the bombings occurred, people are coming to think that this is a problem that's off the table now. Inflation under control, doesn't seem like the tariffs have pushed anything up yet. The economy is OK. Seems like there is plenty of money out there to buy things. So why not make an all-time high?" ART HOGAN, CHIEF MARKET STRATEGIST, B RILEY WEALTH, BOSTON: "The driver for that momentum clearly is the dissipation of concerns over the magnitude of tariffs. That was the biggest concern in the early April time frame and I think that headwind seems to be dissipating a bit." "The other piece of the puzzle clearly is getting in and out of that geopolitical shock in a short period of time with a fragile ceasefire that we have now with Israel and Iran has been another positive." "The third thing I think it's that there are several members of the Federal Open Market Committee that are leaning into cutting rates in July versus September." ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH, FAIRFIELD, CONNECTICUT: "Investors have regained confidence and have reassessed the situation with regards to tariffs and to how the president is handling the trade issue and that may be the concerns of tariffs leading to massive inflation and to a collapse of the economy won't come to fruition." "Because of those realizations, investors have regained the confidence to step back into the market and bring back stocks to levels that we were at prior to all this trade (uncertainties)." CAROL SCHLEIF, CHIEF MARKET STRATEGIST, BMO PRIVATE WEALTH, MINNEAPOLIS: "The bottom line (of the indexes' record highs) is: business doesn't need 100% certainty. They just need directional clarity and they're starting to get it. Underlying economics have been solid and, while consumers bear close watching, we suspect the narrative shift and business-friendly aspects of the "One Big Beautiful Bill" plus reduced regulation and amenable capital markets can revive at least some sidelined projects."
Daily Mail
21 minutes ago
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Trump's Bezos wedding snub: How Amazon founder and bride Lauren Sanchez failed to cash in on Elon Musk fallout
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The Independent
32 minutes ago
- The Independent
Tariff optimism lifts shares after US-China deal
European blue-chips ended solidly higher on Friday, shaking off robust US data which may have cemented another Federal Reserve hold next month, with tariff optimism lifting morale. The FTSE 100 index closed up 63.31 points, 0.7%, at 8,798.91. The FTSE 250 was up 241.30 points, 1.1%, at 21,715.96, and the AIM All-Share added 2.29 points, 0.3%, at 769.33. For the week, the FTSE 100 added 0.3%, the FTSE 250 surged 2.7% and the AIM All-Share gained 1.3%. Over the course of the whole first half of the year, the FTSE 100 has climbed 7.7%. In European equities on Friday, the CAC 40 in Paris jumped 1.8%, while the DAX 40 in Frankfurt surged 1.6%. The pound was quoted lower at 1.3713 dollars at the time of the London equities close, compared to 1.3733 dollars on Thursday. The euro stood at 1.1717 dollars, higher against 1.1698 dollars. Against the yen, the dollar was trading higher at 144.75 yen compared with 144.48 yen. The yield on the US 10-year Treasury was quoted at 4.27%, narrowing from 4.28%. The yield on the US 30-year Treasury was quoted at 4.82%, narrowing from 4.84%. In New York, the Dow Jones Industrial Average was up 1.0%, while the S&P 500 and Nasdaq Composite each added 0.6%. 'Stock markets this week have been on a frenzy, with Nasdaq leading the US Indices to new all-times on Wednesday and the S&P 500 is joining its tech-focused colleague,' Oanda analyst Elior Manier commented. 'Markets are awaiting and getting a few good news on the US trade deals – the latest is the White House announcing that July 9 is in the end not too important, and Trump mentioning the completion of a deal with China, however the details are still missing.' The analyst added: 'Even the release of PCE data hasn't sparked major volatility. The buying momentum after the de-escalation and ceasefire in the Middle East really has been mind-boggling. Dip buyers have had the hand in the past five years, particularly when bullish catalysts come into play (or bearish catalysts fade away). A three-month recovery took the [S&P 500] back from 4,800 all the way to 6,160 current levels.' The US Federal Reserve's key inflationary gauge, the core personal consumption expenditures price index, was higher than anticipated in May, data published by the Bureau of Economic Analysis showed Friday. Annual core PCE inflation was 2.7% in May, accelerating a notch from 2.6% in April, the latter upwardly revised from 2.5%. Market consensus for May had been 2.6%, according to FXStreet. With core PCE inflation rising, it is unlikely that the Federal Reserve will cut US interest rates before September, much to the chagrin of President Donald Trump, who is pushing for immediate rate cuts. 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The sportswear firm reported a drop in annual profit amid softer revenue and warned of a one billion dollar cost increase in financial 2026 due to new tariffs, which it aims to mitigate through targeted actions across the business. AJ Bell analyst Russ Mould commented: 'The footwear manufacturer has brought back Elliott Hill as CEO to drive a turnaround and investors lapped up his every word on plans to get the business back on track with new sports-focused product lines.' JD Sports rose 7.6%, the athleisure retailer leading the way on the FTSE 100 in a positive read across. 'A healthier Nike playing catch-up with product innovation could stimulate new demand for its products and theoretically JD Sports would benefit as it is a key retailer of Nike shoes,' Mr Mould added. Also on the up in London were stocks with an exposure to China. Among them, luxury fashion firm Burberry added 7.1%. XTB analyst Kathleen Brooks commented: 'The key theme for markets in the next week and a half will be US trade agreements, as July 9 is the deadline for the reciprocal tariff reprieve. There has been some good news on this front. Both China and the US have confirmed that they have agreed a trade framework going forward.' Brent oil was quoted lower at 66.83 dollars a barrel late on Friday afternoon in London from 67.83 dollars late Thursday. Gold fetched 3,273.76 dollars an ounce, lower against 3,322.21 dollars. Weaker gold prices hurt precious metal miners. Hochschild Mining gave back 2.6%. Elsewhere, Next 15 added 15%, recovering some of its 28% slide from Thursday. It confirmed it is in early talks to dispose of some of its brands, a day after it announced a new chief executive and warned on profit. The London-based business growth consultant said it is actively considering options to speed up value creation across its business units and enhancing the delivery of its commercial and strategic objectives. 'The board's primary focus is maximising shareholder value. At this time, there can be no certainty that any agreement will be reached, nor as to the terms of any such agreement, including if sufficient value is not realised. Further updates will be provided as appropriate,' Next 15 said. The biggest risers on the FTSE 100 were JD Sports, up 6.18p at 87.88p, Ashtead Group, up 249.00p at 4,732.00p, Melrose Industries, up 18.60p at 536.00p, Standard Chartered, up 33.00p at 1,219.00p, and IMI, up 50.00p at 2,116.00p. The biggest fallers on the FTSE 100 were Endeavour Mining, down 96.00p at 2,176.00p, Fresnillo, down 63.00p at 1,433.00p, Babcock, down 20.00p at 1,137.00p, BAE Systems, down 25.50p at 1,862.00p, and Coca-Cola Europacific Partners, down 70.00p at 6,640.00p. Monday's economic calendar has UK GDP data at 7am and a German inflation reading at 1pm. The week picks up pace with eurozone consumer price data and a host of PMI readings on Tuesday. US nonfarm payrolls will be the main event on Thursday, before markets in New York closed for Independence Day on Friday. On the UK corporate front, grocer Sainsbury's releases a trading statement on Tuesday. Contributed by Alliance News.
