The Market News Today: ISM Services Report Critical for Gold Bullish Sentiment

US ISM Services PMI and ADP Reports Key for Market Insights Today

The European session is quiet with final Services PMIs and Eurozone PPI reports. In the American session, key events include the US ADP employment report, Bank of Canada (BoC) policy decision, and US ISM Services PMI. The BoC is expected to cut rates by 25 bps to 4.75%. The ISM Services PMI is forecasted at 50.5. The ADP report, while not a major market mover, will be watched for labor market trends. Market attention will be on these reports to gauge economic health and inflation trends.

Stock Futures Edge Up as Investors Eye Labor Data and Earnings

Stock futures rose slightly Tuesday night ahead of private payroll data and ongoing corporate earnings. Hewlett Packard Enterprise surged over 16% and CrowdStrike jumped nearly 7% in after-hours trading on strong earnings. The Dow rose 140 points, while the S&P 500 and Nasdaq gained about 0.2%. Investors focus on labor market data, with JOLTS showing 8.059 million vacancies. ADP report, services data, and May jobs report are key upcoming indicators. Dollar Tree and Lululemon earnings are also anticipated.

Intel Aims to Reclaim Chipmaking Leadership with New Strategies

Intel seeks to regain its top chipmaker status, overtaken by TSMC and Samsung. CEO Pat Gelsinger aims to leverage U.S. factories and improve process technology. Intel’s foundry business posted a $7 billion loss in 2023. Funding from the CHIPS Act is expected to aid manufacturing advancements. At Computex, Intel unveiled the Xeon 6 processor for data centers, aiming to enhance market share. China remains a key market despite regulatory challenges.

AI Chip Startup Kneron Launches New Products to Compete with Nvidia, AMD

AI chip startup Kneron launched the KNEO 330, targeting businesses wanting in-house AI capabilities, challenging Nvidia and AMD. Backed by Qualcomm and Foxconn, Kneron aims to offer an alternative to cloud giants like Microsoft and Amazon. The KNEO 330 enables companies to run AI applications on-premises, enhancing data privacy. Kneron also unveiled the KL830 processor chip for PCs, allowing on-device AI applications, further competing with Intel and AMD.

Gold Steady Amid Yield Drop; Oil Dips on Rising U.S. Stockpiles

Gold prices rose slightly as lower Treasury yields increased bullion’s appeal, with investors awaiting key U.S. data for Fed policy insights. Central banks’ gold purchases rose in April, signaling strong demand. Oil prices continued to fall due to increased U.S. crude and fuel stockpiles, raising concerns about demand. API data showed a significant crude inventory build, contrary to expectations, pressuring oil prices further. Upcoming EIA data will be crucial for market sentiment.