U.S. Futures Decline Ahead of Triple Witching, Oil Prices Edge Lower

U.S. index futures are moderately lower in pre-market trading this Friday as Wall Street prepares for triple witching, a significant quarterly event. During this period, derivative contracts tied to stocks, index options, and futures all expire simultaneously, forcing traders to roll over their positions or open new ones. This can increase market volatility, with approximately $5.5 trillion set to expire on Friday, according to the options platform SpotGamma.

At 6:52 AM, Dow Jones (DOWI:DJI) futures fell 42 points, or 0.11%. S&P 500 futures declined 0.15%, and Nasdaq-100 futures lost 0.11%. The yield on 10-year Treasury bonds was at 4.228%.

In the commodities market, West Texas Intermediate crude for August fell 0.07% to $81.24 per barrel. Brent crude for August fell 0.11%, near $85.62 per barrel. Iron ore traded on the Dalian exchange fell 0.36% to $111.76 per metric ton.

Friday’s economic calendar begins at 9:45 AM with the release of preliminary readings of the manufacturing and services Purchasing Managers’ Indexes (PMI), expected at 51 and 53.7, respectively. At 10:00 AM, the U.S. Department of Commerce will publish data on May’s existing home sales.

Asian markets mostly ended lower on Friday, impacted by the Nasdaq’s decline, which affected tech stocks in Hong Kong, South Korea, and Taiwan. The Hang Seng Index fell -1.67%, while the Kospi Index fell -0.83%. In mainland China, markets also retreated, with the Shanghai SE falling -0.24%, pressured by consumer sectors. In contrast, Japan’s Nikkei had a slight decline of -0.09%. Japan’s manufacturing PMI rose to 50.5, signaling expansion. The yen is under watch after recent declines increased the risk of currency intervention. Bucking the trend, Australia’s ASX 200 rose +0.34%.

European markets are down today, influenced by the U.S. and the yen’s depreciation. Despite a brief recovery after the European Parliament elections and new elections called in France, stocks fell again. Today, investors are focused on various central bank decisions and new economic data. The Stoxx 600 index is down, with the banking and construction sectors leading the losses. Carlsberg (TG:CBGB) shares fell 7.7% after Britvic rejected two acquisition proposals, while Britvic (LSE:BVIC) shares rose 6.9% following the announcement.

On Thursday, major U.S. indexes moved in opposite directions. The Dow Jones had its best day of the month, rising 0.77% to close at 39,134.76 points, driven by gains in Salesforce (NYSE:CRM) and Chevron (NYSE:CVX). In contrast, the S&P 500 fell 0.25% to 5,473.17 points, and the Nasdaq dropped 0.79% to 17,721.59 points, with Nvidia (NASDAQ:NVDA) falling 3.5%. Unemployment claims signaled moderation in employment growth, falling to 238,000. Meanwhile, housing starts plummeted 5.5% in May, contrary to expectations of a rise. Building permits fell 3.8%, reflecting weak demand. The data suggested a stable labor market but potential weakening in the housing sector.

In terms of quarterly reports, Carmax (NYSE:KMX) and FactSet (NYSE:FDS) are scheduled to report before the market opens.

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