Investing.com-- U.S. stock index futures edged higher Monday as investors awaited more cues on interest rates from a slew of Federal Reserve officials and key labor market readings this holiday-shortened week.
At 06:20 ET (10:20 GMT), Dow Jones Futures rose 70 points, or 0.2%, S&P 500 Futures rose 7 points, or 0.1%, while Nasdaq 100 Futures rose 15 points, or 0.1%.
The main indices are set to start the new week with gains, rebounding after losses on Friday, but continuing the largely positive note seen during the previous quarter as the second half of the year starts.
For the quarter, the S&P 500 and NASDAQ Composite added 3.9% and 8.3%, respectively, while the Dow Jones Industrial Average lost 1.7%. The Nasdaq notched its third positive quarter in a row for the first time since a five-quarter streak ending in 2021, with the major tech stocks leading the way on enthusiasm for all things linked with artificial intelligence.
Payrolls, Fed comments in focus
The focus this week will be on Friday's release of key nonfarm payrolls data for June. The reading is set to provide more insight into the labor market, whose resilience has also been a key point of contention for the Fed in cutting rates.
The PCE price index, a key inflation gauge for the Fed, showed later last week that inflation was slowing very gradually, meaning there still remains a great deal of uncertainty over when the U.S. central bank will start cutting interest rates.
Ahead of the nonfarm payrolls data, a report on Tuesday is expected to show that job openings declined again in May.
Wednesday sees the release of the minutes of the Fed’s June meeting, and will be parsed for the central bank’s view of the economic outlook and the factors influencing the monetary policy outlook.
Additionally, there are a slew of Fed officials due to speak this week, chiefly Chairman Jerome Powell, who is set to appear at the European Central Bank’s annual forum in Portugal on Tuesday.
remained sticky in May. Uncertainty over the 2024 Presidential elections, after a debate between President Joe Biden and rival Donald Trump, also kept sentiment on edge.
Boeing agrees purchase of Spirit Aerosystems
The Independence Day holiday on Thursday is also set to shorten the trading week, while uncertainty over the 2024 Presidential elections, after a debate between President Joe Biden and rival Donald Trump, will also keep sentiment on edge.
Among individual stocks, Boeing (NYSE:BA) stock fell around 1% premarket the planemaker agreed to buy Spirit Aerosystems (NYSE:SPR), rose 6.5%, for $4.7 billion, ending a lengthy pursuit that was complicated by contracts Spirit had with Boeing's main rival Airbus (EPA:AIR).
Tesla (NASDAQ:TSLA) stock rose almost 2% premarket despite the EV maker's June-quarter deliveries likely falling 3.7%, the first time it is set to post two straight quarters of decline.
Crude boosted by rise in Caixin manufacturing PMI
Crude prices edged higher Monday, helped by a private survey showing Chinese manufacturing activity grew more than expected in June, offering hope this important economy was steadily recovering.
By 06:20 ET, the U.S. crude futures (WTI) traded 0.3% higher at $81.81 per barrel, while the Brent contract climbed 0.4% to $85.31 per barrel.
The Caixin Manufacturing PMI rose 51.8 in June, compared to expectations for a reading of 51.5, and the prior month’s reading of 51.7.
The reading contrasts with government PMI data released on Sunday, which showed China’s manufacturing sector shrank for a second consecutive month in June.
China is the largest crude importer in the world, and a recovery in its manufacturing sector points to increasing demand in the second half of the year.
(Ambar Warrick contributed to this article.)
This content was originally published on Investing.com
