Market Watch: Dow futures contract increased by 50 points, S&P 500 futures rose 11 points, and Nasdaq 100 futures rose 62 points.
Wall Street anticipates a positive start to the week and quarter ahead of Friday’s payrolls report, Meta Platforms may face EU charges, and Boeing completes Spirit Aerospace purchase.
EU charge Meta
The European Union is set to charge Meta Platforms with violating the bloc’s digital rules, citing concerns over Meta’s “pay or consent” model, which requires users to consent to their personal data being tracked for advertising purposes. The Digital Markets Act aims to limit Big Tech power.
 French elections
France’s far-right National Rally party and its allies secured 33% of the national popular vote in the first round of parliamentary elections, with the New Popular Front coming in second with 28%. The result has boosted the euro and the French benchmark equity index, the CAC 40, despite concerns about spending increases amid France’s high budget deficit.
Boeing buy Spirit AeroSystems
Boeing has announced a $4.7 billion all-stock deal to buy Spirit AeroSystems, a key supplier to Airbus. The deal, valued at $8.3 billion, follows Boeing’s decision to buy back its former subsidiary. Airbus will receive $559 million in compensation from Spirit and take over core activities at four of the supplier’s plants. Spirit plans to sell businesses and operations in Scotland, Malaysia, and Belfast.
China’s private PMI
China’s private PMI, a private survey, showed growth in June, boosting crude prices. The index rose to 51.8, the fastest in over three years, above the break-even line.
China’s manufacturing activity fell for a second month in June, while services activity reached a five-month low. U.S. crude futures and Brent contracts gained 6% in June, with OPEC+ extending deep oil output cuts into 2025.
Economic Calendar
- 9:45Â PMI Manufacturing Index
- 10:00Â ISM Manufacturing Index
- 10:00Â Construction Spending
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Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow, the benchmark and tech-heavytouched record marks last week.
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
Recent data indicating a possible cooling in the U.S. economy have alleviated some persistent inflation concerns, fueling hopes that the Federal Reserve will start to bring interest rates down from more than two-decade highs as soon as September. Along with the Dow,
The durability of the strength on Wall Street will likely be tested by a fresh batch of corporate results this week, including quarterly returns from artificial intelligence darling Nvidia (see below). Durable goods and consumer sentiment data will also be in focus as markets hunt for more evidence that growth is moderating enough to give the Fed justification for rolling out rate cuts this year.
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MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.
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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.