Futures Pointing To Initial Rebound On Wall Street

Following the downturn seen over the course of the previous session, stocks may move back to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.

Optimism about the outlook for interest rates may lead to renewed buying interest on Wall Street following last Friday’s closely watched inflation data.

The report showed a slowdown in the annual rate of consumer price growth, leading to increased speculation the Federal Reserve is likely to lower interest rates at least once this year.

Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of the Labor Department’s closely watched monthly jobs report on Friday.

The report, which is expected to show a slowdown in the pace of job growth in the month of June, could impact the outlook for interest rates.

Traders may also stick to the sidelines ahead of remarks by Fed Chair Jerome Powell on Tuesday as well as the Independence Day holiday on Thursday.

Not long after the start of trading, the Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of June.

The ISM’s manufacturing PMI is expected to inch up to 49.1 in June from 48.7 in May, although a reading below 50 would still indicate contraction.

The Commerce Department is also due to release its report on construction spending in the month of May. Construction spending is expected to tick up 0.1 percent in May after edging down by 0.1 percent in April.

Stocks moved mostly higher in early trading on Friday but showed a significant downturn over the course of the session. The major averages pulled back well off their early highs and into negative territory.

After reaching record intraday highs, the Nasdaq slid 126.08 points or 0.7 percent to 17,732.60 and the S&P 500 fell 22.39 points or 0.4 percent to 5,460.48. The narrower Dow posted a more modest loss, edging down 45.20 points or 0.1 percent to 39,118.86.

For the week, the Nasdaq rose by 0.2 percent but the Dow and the S&P 500 both edged down by 0.1 percent. However, the Nasdaq and the S&P 500 posted substantial gains for the first half of the year.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index inched up by 0.1 percent, while China’s Shanghai Composite Index advanced by 0.9 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index has surged by 1.5 percent, the German DAX Index is up by 0.4 percent and in the U.K.’s FTSE 100 Index is up by 0.3 percent.

In commodities trading, crude oil futures are climbing $0.52 to $82.06 a barrel after dipping $0.20 to $81.54 a barrel last Friday. Meanwhile, after inching up $3 to $2,339.60 an ounce in the previous session, gold futures are rising $6.10 to $2,345.40 an ounce.

On the currency front, the U.S. dollar is trading at 161.21 yen versus the 160.88 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0740 compared to last Friday’s $1.0713.

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