U.S. Stock Futures Climb on Speculation of Fed Rate Hold: Market Overview

Positive U.S. job data hints the Federal Reserve may delay interest rate hikes, preventing potential recession.

The S&P 500 futures saw a 0.6% boost. A decrease in Treasury two-year yields to 4.78% and the dollar’s 0.3% dip underscored market reactions. The odds for a Fed rate hike in 2023 seem diminished.

August’s hiring by U.S. companies remained robust, even as wage growth decelerated. Nonfarm payrolls increased by 187,000, despite a revised drop the previous month, as per Friday’s Bureau of Labor Statistics. With a rise in active participants, unemployment edged up to 3.8%, while wage increments moderated.

Corporate Highlights:

  • Tesla Inc. (TSLA) introduces an enhanced Model 3 sedan with an appealing design and extended mileage, alongside reduced premium car prices, aiming to boost sales.
  • Walgreens Boots Alliance Inc. (WBA) sees CEO Rosalind Brewer exit amidst turbulent transitions in health care service offerings and declining shares.
  • Positive sales results from Dell Technologies Inc. (DELL) for PCs and data center equipment led to a stock increase.
  • On a pessimistic outlook, Broadcom Inc., (AVGO) a prominent chip provider, witnessed a decline.
  • Lululemon Athletica Inc. (LULU) updated its yearly forecast on the back of gaining market share and countering the prevailing retail downturn.
  • Supportive governmental policies in Beijing and Shanghai have resulted in a surge in U.S.-listed Chinese stocks.

Key Market Movements:

  • Stocks: S&P 500 futures up by 0.6% (8:40 a.m. NY time); Nasdaq 100 futures increased by 0.7%; Dow Jones Industrial Average futures climbed 0.5%; Stoxx Europe 600 surged 0.3%; MSCI World index elevated by 0.2%.
  • Currencies: Bloomberg Dollar Spot Index down by 0.3%; euro at $1.0872 (up 0.3%); British pound at $1.2705 (up 0.3%); Japanese yen at 144.55 per dollar (0.7% rise).
  • Cryptocurrencies: Bitcoin valued at $26,058.98 (0.2% rise); Ether at $1,645.45 (a 0.2% decline).
  • Bonds: 10-year Treasuries yield fell to 4.07%; Germany’s 10-year yield at 2.46%; Britain’s 10-year yield at 4.34%.
  • Commodities: West Texas Intermediate crude priced at $84.51 a barrel (1.1% increase); Gold futures at $1,978.20 an ounce (0.6% rise).

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U.S. Stock Futures Climb on Speculation of Fed Rate Hold: Market Overview

Editor Prism MarketView