US futures keep the calm for now but the coast isn’t clear yet
S&P 500 futures are up 0.1% and Nasdaq futures up 0.4% on the day currently. This follows up from the slight gains yesterday, which helps to bite back at a chunk of the drop from Monday.
Now, the turn in the market mood owes much to the softer US inflation data for June. But as mentioned earlier, it may not necessarily be telling of the broader trend in terms of price developments. That especially now with the US-Iran conflict acting up again, leading to a surge in oil prices.
But at the very least, it is affording markets a bit of a breather as seen above. That being said, the coast isn't clear just yet.
The bond market continues to stay under pressure with 10-year yields now inching back to 4.60%. Meanwhile, the dollar is also recouping losses with EUR/USD dropping back to 1.1410 levels and USD/JPY inching towards 162.40 again today. If anything, the tell is in the bond market but at least 2-year yields are down to 4.21% from a high of near 4.30% just before the US CPI report.
But if the US-Iran conflict rages on and drags on for longer, it feels like it is only a matter of time before markets turn for the uglier again. And therein lies the risk for US stocks and tech shares in this latest bit-part rebound.
So far today, there is still some element of calm but could it be one that preludes the storm that is about to hit? Let's take a look at which names are leading the block in pre-market trading for now.
In terms of big tech, Apple is up 0.7%, Amazon up 0.4%, and Microsoft up 0.3%. The recent focus though has been on semiconductors and in that space, Intel is up big by 3.2% and AMD up by 0.9% on the day so far. But then, we're also seeing Micron down 0.5% so it's not a broad-based run to say the least. Besides that, Applied Materials is also up by nearly 3% in pre-market - owing much to stronger ASML earnings earlier (TSMC to report tomorrow).
The next big focus on the economic calendar will be on the US PPI data later before US retail sales come into play tomorrow.
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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