The Market News Today: Non-Farm Payrolls, Fed Minutes Set to Influence Markets

Fed Chair Powell’s Comments and Jobs Report to Highlight Shortened Week

This holiday-shortened week includes key events: Fed Chair Powell’s remarks, FOMC June meeting minutes, and the U.S. jobs report. Additionally, investors will see data on manufacturing, services, and job openings. Constellation Brands will report earnings. Market watchers will closely monitor these events, particularly the employment report, as it could influence the Federal Reserve’s interest rate decisions amid improving inflation.

Stock Futures Rise as Wall Street Eyes Second Half of 2024

Stock futures rose early Monday as Wall Street anticipates the second half of 2024. Dow futures added 55 points, while S&P 500 and Nasdaq-100 futures gained 0.34% and 0.41%, respectively. Despite recent losses, excitement around AI and stocks like Nvidia drove significant gains in the first half. The S&P 500 rose 14.5%, and the Nasdaq Composite rallied 18.1%. Investors look to the June jobs report and manufacturing data for further market direction this holiday-shortened week.

Treasury Yields Rise as Investors Await Key Economic Data This Week

U.S. Treasury yields rose Monday as investors awaited key economic data. Last week’s data showed inflation at its lowest annual rate in over three years, with core PCE rising 0.1% monthly and 2.6% annually. Investors anticipate labor market insights this week, including job openings, ADP’s private payrolls, and June’s jobs report. These could impact Federal Reserve decisions on interest rates. Additionally, manufacturing sector data and construction spending figures are due Monday.

Gold Prices Steady as U.S. Inflation Eases, Fed Rate Cuts Anticipated

Gold prices remained steady Monday as U.S. inflation data indicated subsiding price pressures, raising hopes for Federal Reserve rate cuts this year. The personal consumption expenditures index rose 2.6% in May, aligning with expectations. Traders see a 64% chance of a rate cut in September. Market attention is now on Fed Chair Jerome Powell’s remarks and upcoming labor market data. Emerging market central banks are expected to continue diversifying reserves into gold despite recent slower purchases.

Oil Prices Climb Amid Supply Deficit Forecasts and Peak Summer Demand

Oil prices rose Monday due to expected supply deficits from peak summer fuel demand and OPEC+ cuts, despite global economic concerns and increased non-OPEC+ output. Both Brent and WTI gained around 6% in June. Analysts forecast supply deficits in Q3 due to high transportation and air-conditioning demand. Additionally, geopolitical tensions and potential U.S. Federal Reserve interest rate cuts support prices. The Atlantic hurricane season’s impact on production and consumption is also being closely monitored.