US futures gain after yet another Wall Street high: Markets Wrap

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US futures gain after yet another Wall Street high: Markets Wrap

(Bloomberg) — US stocks are set to scale yet another all-time high Tuesday as investors await Federal Reserve Chair Jerome Powell’s testimony to Congress for clues on the US interest-rate outlook.

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Futures on the S&P 500 edged higher after the benchmark closed 0.1% up in New York to set its 35th record for the year, with the second-quarter reporting season about the get underway. Contracts on the Nasdaq 100 rose about 0.3%. The dollar hovered near a one-month low, while US Treasuries were steady.

Powell faces pressure from lawmakers growing impatient for interest-rate cuts and others who are unhappy with the Fed’s latest plan to boost capital requirements for Wall Street lenders. Markets are pricing the chance of two rate cuts this year, with a roughly 70% chance of the first in September, according to swaps data compiled by Bloomberg.

“With the recent signs of softer growth and labor market, markets will closely watch if Powell gives any hints on the timing of rate cuts,” said Carol Kong, a strategist at Commonwealth Bank of Australia in Sydney. “Market pricing for a September cut can increase and the US dollar can fall further if Powell’s comments are perceived as dovish.”

Jerome Powell. (Bloomberg)

Jerome Powell. (Bloomberg)

Meanwhile, Europe’s benchmark Stoxx 600 index (^STOXX) declined. France’s CAC 40 (^FCHI) underperformed as investors remain wary about increased government spending following the left’s resurgence in the weekend election, which produced a hung parliament.

Among individual stock movers in Europe, BP Plc (BP) fell more than 3% after saying it will take a hit of as much as $2 billion from impairments in second-quarter results. Dassault Systemes SE (DSYP.XD) fell after cutting its full-year earnings forecast.

Japanese stocks led an advance in Asia as semiconductor-related shares followed gains in their US peers. Information technology shares were the largest contributors to gains in the MSCI Asia Pacific Index. The Nikkei 225 Stock Average (^N225) climbed to a record, extending its advance for the year to more than 24%.

In commodities, oil steadied after losing almost 2% in the previous two sessions, with the worst of storm Beryl over in the US for the crude hub in and around Houston. Gold was little changed after dropping by the most in two weeks on Monday. Copper crept lower.

Key events this week:

  • China aggregate financing, money supply, new yuan loans, from Tuesday

  • Jerome Powell delivers semi-annual testimony to the Senate Banking Committee, Tuesday

  • US Treasury Secretary Janet Yellen testifies to the House Financial Services Committee, Tuesday

  • Fed’s Michael Barr and Michelle Bowman speak, Tuesday

  • China PPI, CPI, Wednesday

  • Jerome Powell testifies to the House Financial Services Committee, Wednesday

  • Fed’s Austan Goolsbee, Michelle Bowman and Lisa Cook speak, Wednesday

  • US CPI, initial jobless claims, Thursday

  • Fed’s Raphael Bostic and Alberto Musalem speak, Thursday

  • China trade, Friday

  • University of Michigan consumer sentiment, US PPI, Friday

  • Citigroup, JPMorgan and Wells Fargo’s earnings, Friday

Some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 fell 0.3% as of 8:08 a.m. London time

  • S&P 500 futures rose 0.2%

  • Nasdaq 100 futures rose 0.3%

  • Futures on the Dow Jones Industrial Average were little changed

  • The MSCI Asia Pacific Index rose 0.6%

  • The MSCI Emerging Markets Index rose 0.3%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0828

  • The Japanese yen was little changed at 160.75 per dollar

  • The offshore yuan was little changed at 7.2878 per dollar

  • The British pound was little changed at $1.2811

Cryptocurrencies

  • Bitcoin rose 2.2% to $57,490.33

  • Ether rose 2.6% to $3,075.35

Bonds

  • The yield on 10-year Treasuries advanced one basis point to 4.29%

  • Germany’s 10-year yield advanced two basis points to 2.56%

  • Britain’s 10-year yield advanced two basis points to 4.13%

Commodities

  • Brent crude was little changed

  • Spot gold rose 0.2% to $2,363.17 an ounce

This story was produced with the assistance of Bloomberg Automation.

—With assistance from Matthew Burgess.

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