U.S. futures were higher on Monday morning, extending the Wall Street rally from the previous trading session. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.25%, 0.19%, and 0.11%, respectively, at 4:30 a.m. EST, August 26.
On Friday, the three major indices surged and ended the week with gains for the second consecutive week. The S&P 500, the Nasdaq Composite, and the Dow Jones added 1.2%, 1.5%, and 1.1%, respectively. The gains came after Federal Reserve Chair Jerome Powell stated that “the time has come for policy to adjust” due to easing inflation and a cooling labor market.
This week, investors will look forward to more clues on the interest rate trajectory with the release of July’s U.S. Personal Consumption Expenditures (PCE) data on Friday. Among other key economic reports, Q2 2024 GDP Growth (second estimate) is due for release on Thursday. Additionally, the University of Michigan will release its consumer sentiment index for August on Friday.
On the earnings front, investors are looking ahead to Nvidia’s (NVDA) second-quarter earnings report due on Wednesday. Additionally, Salesforce (CRM), Li Auto (LI), CrowdStrike (CRWD), Okta (OKTA), Lululemon (LULU), Ulta Beauty (ULTA), and Dell Technologies (DELL) will announce results this week.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 3.795% at the time of writing. At the same time, WTI crude oil futures are trending higher, hovering near $75.71 per barrel as of the last check.
Elsewhere, European indices opened mixed on Monday morning as investors assessed the impact of rising tensions in the Middle East.
Asia-Pacific Markets Traded Mixed on Monday
Asia-Pacific indices were mixed today. Optimism stemming from Powell’s hint at a potential interest rate cut was overshadowed by escalating tensions between Israel and Hezbollah in the Middle East, raising concerns among investors.
Hong Kong’s Hang Seng index gained 1.06%. Further, China’s Shenzhen Component and Shanghai Composite indices were up by 0.04% and 0.16%, respectively. However, Japan’s Nikkei and Topix indices closed lower by 0.66% and 0.87%, respectively.
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