Equity futures faced initial pressure overnight on concerns over the US imposing unilateral tariffs in two weeks. However, early US trading saw a partial recovery as investors remained cautiously optimistic about advancing trade talks between the US and China. Despite these talks, the looming tariff deadline could inject volatility if no substantial progress is made before next week’s end.
Nasdaq 100 futures (/NQM5) edged up 0.25% following the first weekly loss in equities. Boeing (BA) shares fell 5% after a 787 Dreamliner crashed shortly after takeoff in India. In contrast, Oracle (ORCL) surged over 13% after posting strong earnings. Market watchers are also monitoring whether the Trump administration will extend pauses on reciprocal tariffs.
Modest Inflation Data Eases Price Pressure Concerns
US factory-gate inflation remained subdued in May, with the Producer Price Index rising only 0.1%, consistent with earlier inflation reports. This muted price growth suggests tariff-related cost pressures have yet to significantly impact the broader economy.
Bond Market Eyes Debt Demand Amid Rising Yields
Bond futures climbed, with 30-year Treasury futures up 0.50% ahead of a key auction scheduled for midday CDT. Strong demand at yesterday’s 10-year note auction helped ease worries about investors’ appetite for US debt amid rising national borrowing.
Gold Climbs on Lower Yields and Iran Tensions
Gold prices (/GCQ5) surged nearly 2%, approaching early May highs. Declining Treasury yields and a softer US dollar supported the rally, while geopolitical uncertainty surrounding Iran added to safe-haven demand. Bulls eye a breakout above $3,427.70 to target recent peaks.
Crude Oil Pulls Back After Big Rally
Oil prices (/CLN5) slipped following a sharp 4.88% gain—the largest daily jump since October last year. The US began evacuating non-essential embassy staff from Iraq amid fears of an imminent military strike on Iran, possibly by Israel, with Iraq poised as a potential retaliation zone.
Euro Futures Rise on Dollar Weakness and Positive Trade News
Euro futures (/6EM5) reached new three-year highs as the dollar weakened amid hopeful US-China trade developments. Meanwhile, the European Central Bank adopts a more hawkish stance even as markets price in Federal Reserve interest rate cuts. ECB officials noted Europe’s economy is moving toward balance, further supporting the euro’s strength.
