U.S. Stock Futures Under Pressure as Key Earnings Await

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Investors are closely monitoring the performance of the S&P 500 after significant gains in the previous session. Today, eyes are on big banks such as JPMorgan Chase & Co. as they report their earnings.

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Stock Index Futures Trading

  • S&P 500 futures (ES00) slipped 4.5 basis points to 4,538.75
  • Dow Jones Industrial Average futures (YM00) dropped 41 points, or 0.1%, to 34,548
  • Nasdaq-100 futures (NQ00) fell 17.25 points, or 0.1%, to 15,695

Yesterday, the Dow Jones Industrial Average (DJIA) saw a slight gain of 47.71 points, or 0.1%, reaching 34,395.14. The Nasdaq Composite (COMP) also experienced growth, gaining 219.61 points or 1.6% to close at 14,138.57.

Focus on Second-Quarter Earnings

Today, markets are eagerly awaiting the second-quarter earnings reports from JPMorgan, Wells Fargo & Co., BlackRock Inc., and Citigroup. These financial giants will share their insights after a quarter marked by bank failures and interest-rate hikes. Additionally, UnitedHealth Group Inc. will also address investors.

Economic Data in Focus

In addition to earnings news, market participants will be keeping an eye on economic data. Import prices for June will be released at 8:30 a.m. Eastern Time, followed by preliminary consumer sentiment for July at 10 a.m.

The S&P 500’s Rally Driven by Positive Economic News

The S&P 500 recently broke through the significant 4,500 level, marking an important milestone in months. This surge was fueled by encouraging reports on producer prices and a decrease in jobless benefit applicants. The previous day, the stock market had experienced a similar boost due to positive consumer price data.

According to Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, the likelihood of a 25 basis point hike at the Fed’s July meeting has remained relatively stable, with a probability of over 90%. However, the chances of another rate increase following the June hike are becoming more uncertain. As a result, equity markets are responding positively to the softened Fed expectations.

While bond yields initially dipped, they started to rise again on Friday. The benchmark 10-year Treasury yield, which began the week around 4.1%, has now reached 3.79%, a level not seen since late June. It is important to note that bond yields move inversely to prices.

Furthermore, the ICE U.S. Dollar Index, a measure of the dollar’s value against other major currencies, has continued its upward trend, reaching levels unseen in over a year. It is currently trading at 99.77.

Overall, these recent economic developments have contributed to the S&P 500’s impressive rally.

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