Stock futures climbed after a key inflation gauge showed some signs of moderation, which could reduce the pressure on the Federal Reserve to deliver more than one hike by the end of 2023.
(Bloomberg) — Stock futures climbed after a key inflation gauge showed some signs of moderation, which could reduce the pressure on the Federal Reserve to deliver more than one hike by the end of 2023.
Nasdaq 100 contracts climbed about 1%, signaling the tech-heavy gauge will notch a record first-half rally. Treasury two-year yields, which are more sensitive to imminent Fed moves, trimmed their advance. The dollar retreated.
The personal consumption expenditures price index, one of the Feds preferred inflation gauges, rose 0.1% in May, Commerce Department figures showed Friday. From a year ago, the measure stepped down to 3.8%, the smallest annual advance in more than two years.
In corporate news, Apple Inc. is on the verge of becoming the first company to ever achieve a market value of $3 trillion, the latest sign of big tech’s seemingly unstoppable dominance on Wall Street. Nike Inc. fell after the sportswear maker’s outlook for the full year failed to win over Wall Street.Â
The three-month London interbank offered rate for dollars fixed for the final time on Friday, ending 50 years as a global benchmark.
The rate for lending between banks rose roughly 1.2 basis points to 5.54543%. The spread of Libor over overnight index swaps — once a barometer of funding pressure — was wider at 26.6 basis points.
Elsewhere, Brent oil is on course for its longest run of quarterly losses in data going back more than three decades as persistent concerns over the demand outlook and robust supplies weigh on prices. West Texas Intermediate was heading for its first back-to-back decline since 2019.
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.6% as of 8:41 a.m. New York time
- Nasdaq 100 futures rose 0.9%
- Futures on the Dow Jones Industrial Average rose 0.4%
- The Stoxx Europe 600 rose 1.1%
- The MSCI World index rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.2% to $1.0889
- The British pound rose 0.6% to $1.2685
- The Japanese yen rose 0.2% to 144.43 per dollar
Cryptocurrencies
- Bitcoin rose 2.1% to $31,047.54
- Ether rose 2.9% to $1,902.23
Bonds
- The yield on 10-year Treasuries was little changed at 3.84%
- Germany’s 10-year yield was little changed at 2.41%
- Britain’s 10-year yield advanced four basis points to 4.42%
Commodities
- West Texas Intermediate crude rose 0.4% to $70.11 a barrel
- Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Rob Verdonck, Tassia Sipahutar, Robert Brand and Denitsa Tsekova.
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