Good morning traders!
The S&P 500 ($SPY) is trading above Friday’s close. Let’s get into it…
Stock futures are poised for a positive start on Monday, buoyed by encouraging data from China and optimistic comments from Treasury Secretary Janet Yellen, which have bolstered hopes for the robustness of the world’s two largest economies. Nasdaq 100 futures have surged by nearly 0.6%, largely driven by Tesla’s impressive performance following an upgrade from Morgan Stanley. After a challenging week where tech stocks, particularly Apple, faced a downturn, the major indices are looking to rebound. Apple’s stock, which experienced a two-day dip, is showing signs of recovery as the market eagerly anticipates its fall event scheduled for Tuesday.
Investors’ attention this week will also be on the Consumer Price Index inflation data set to be released on Wednesday. This data is crucial for investors gauging the Federal Reserve’s potential stance on interest rate hikes in its upcoming September meeting. Janet Yellen’s recent statement has also played a role in shaping market sentiment. On Sunday, she expressed confidence in the US’s ability to prevent a recession while effectively managing consumer-price increases, a significant consideration in the Federal Reserve’s deliberations.
Furthermore, recent inflation and other economic data from China have ignited hopes of recovery for the Asian giant. This comes after prolonged concerns about China’s economic rebound, which has been a point of contention for investors. In other significant news from Asia, Governor Kazuo Ueda of the Bank of Japan hinted at a potential shift in the bank’s policy. He indicated that the bank might consider moving away from negative interest rates once its 2% inflation target appears achievable. This suggests that the Bank of Japan, known for its extended ultra-loose monetary policy, might be contemplating interest rate hikes in the foreseeable future.
Monday Economic Events:
No Economic Data Scheduled
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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