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U.S. Stock Futures Rise Amid Focus on Fed Chairman Powell’s Speech, Oil Prices Fall

Fernanda T
Latest News
July 09 2024 6:56AM

U.S. index futures are up in pre-market trading this Tuesday, with investors looking to sustain the all-time highs of the S&P 500 and Nasdaq. Attention is focused on the speech by Federal Reserve Chairman Jerome Powell.

At 6:17 AM, Dow Jones futures (DOWI:DJI) rose 55 points, or 0.14%. S&P 500 futures advanced 0.23%, and Nasdaq-100 futures gained 0.36%. The 10-year Treasury yield was at 4.29%.

In the commodities market, oil prices are falling due to concerns about Hurricane Beryl, which has closed refineries and ports in the U.S. Gulf of Mexico, and the expectation that a possible ceasefire agreement in Gaza could reduce worries about disruptions in the global crude oil supply. West Texas Intermediate crude for August fell 0.36% to $82.03 per barrel. Brent crude for September fell 0.30% to $85.49 per barrel.

The most-traded iron ore contract on the Dalian Commodity Exchange (DCE) fell 0.48% to $114.68 per metric ton. The benchmark SZZFQ4 iron ore contract for August on the Singapore Exchange rose 0.2% to $108.6 per ton.

On the U.S. economic agenda for Tuesday, Federal Reserve Chairman Jerome Powell’s testimony to Congress is scheduled. Powell’s statements may guide investors on the start of the monetary easing cycle. Traders are pricing in approximately a 70% probability of two rate cuts this year, with the first expected in September, according to Bloomberg data.

Asia-Pacific markets rose on Tuesday after the S&P 500 and Nasdaq hit record highs. In Japan, the Nikkei 225 and Topix reached new peaks, rising 1.96% and 0.97%, respectively. South Korea’s Kospi advanced 0.34%, while Hong Kong’s Hang Seng increased by 0.1%. In China, the CSI 300 and Shanghai Composite rose 1.12% and 1.26%, respectively. China will release inflation data on Wednesday. In India, the Nifty 50 and BSE Sensex hit new highs. Australia’s ASX 200 rose 0.86% despite a drop in consumer confidence. Consumer confidence fell by 1.1%, but business confidence rose to +4.

Among individual stocks, Samsung Electronics (KOSPI:005930) shares rose 0.46% despite a union strike. Hyundai (KOSPI:005380) avoided a strike with a wage agreement, but its shares fell 3%. Turkey’s industry and technology minister announced that BYD (USOTC:BYDDY) will invest $1 billion in the country.

European markets were down on Tuesday morning, with oil and gas stocks leading the losses. BP (LSE:BP.) was down 3.7% due to an expected impact on second-quarter profits. While the UK’s FTSE 100 was up 0.10%, Paris’s CAC 40 was down 0.63%, reflecting political uncertainties in France following the elections.

U.S. stocks closed mixed on Monday, with the Nasdaq and S&P 500 reaching records while the Dow fell slightly. The Dow fell 0.08%, while the S&P 500 rose 0.10% to 5,572.85 points, and the Nasdaq advanced 0.28% to 18,403.74 points. Initial optimism about interest rates waned throughout the day as investors awaited economic data and the Federal Reserve Chairman’s testimony.

The Conference Board’s Employment Trends Index fell to 110.27 in June, down from a revised 111.04 in May, indicating a slowdown in hiring in the second half of the year. Communication networks and semiconductor and hardware stocks boosted the Nasdaq, with Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) standing out, while companies like Nike (NYSE:NKE) and McDonald’s (NYSE:MCD) recorded declines.

On the quarterly earnings front, Byrna Technologies (NASDAQ:BYRN) and Helen of Troy (NASDAQ:HELE) are set to report before the market opens.

After the close, numbers are awaited from Smart Global Holdings (NASDAQ:SGH), Kura Sushi USA (NASDAQ:KRUS), and Saratoga Investment Corp (NYSE:SAR).