Last Updated: 4:30 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.54%, 1.08%, and 0.32%, respectively. Investors seem to be rotating back into tech stocks, as Nvidia (NVDA) and Tesla (TSLA) saw impressive surges after last week’s sell-off. Overall, the tech sector (XLK) was today’s leader, while the energy sector (XLE) was the laggard.
Furthermore, the U.S. 10-Year Treasury yield was little changed at 4.25%, and the Two-Year Treasury yield remained flat at 4.52%. This means that the yield curve remains inverted.
Interestingly, compared to Friday, the market is pricing in a slightly lower chance of a rate cut in September. In fact, the market’s expectation for a rate cut is 91.7% versus the 94% seen on Friday. Still, at these levels, investors are almost certain that September will be when Powell decides to begin easing monetary policy.
First Published: 5:04 AM EST
U.S. futures traded higher on Monday morning as investors digested a major development in the U.S. political scenario. President Joe Biden withdrew from the presidential race on Sunday and endorsed Vice President Kamala Harris as the nominee. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.52%, 0.32%, and 0.14%, respectively, at 4:30 a.m. EST, July 22.
Last week, the S&P 500 and the Nasdaq Composite indices saw their worst weekly declines since April, falling 2% and 3.7%, respectively, as investors shifted their focus from mega-cap stocks to small-cap companies. However, the Dow Jones managed to gain 0.7%.
Looking ahead to key economic data for this week, a preliminary reading of the S&P Global Manufacturing Purchase Manager’s Index (PMI) and Services PMI for July will be released on Wednesday. Moreover, the advance estimate for Q2 GDP growth will be made public on Thursday. Also, June’s Core Personal Consumption Expenditures report, which offers insights into inflation, is slated to be released on Friday.
Furthermore, the earnings season continues to heat up, with reports from key companies like Tesla (TSLA), ServiceNow (NOW), Alphabet (GOOGL), General Motors (GM), Ford (F), General Electric (GE), Colgate Palmolive ($CL), and International Business Machines (IBM) scheduled for the week. Today, investors will await results from Verizon (VZ) and Cleveland-Cliffs (CLF).
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.22%. At the same time, WTI crude oil futures trended higher, hovering near $80.40 per barrel as of the last check.
Elsewhere, European markets opened higher on Monday as investors assessed the political situation in the U.S.
Asia-Pacific Markets End Lower on Monday
Most of the Asia-Pacific indices ended today’s trading session in the red after China’s central bank unexpectedly lowered key lending rates.
Meanwhile, China’s Shanghai Composite and Shenzhen Component indices declined by 0.61% and 0.38%, respectively. At the same time, Japan’s Nikkei and Topix indices both closed lower by 1.16%. However, Hong Kong’s Hang Seng index was up 1.25%.
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