Wall Street futures have seen a slight decline ahead of the conclusion of the revenue season, as job numbers are set to influence the latter half of the week. The Labor Bureau releases monthly job openings every Tuesday.
S&P 500 futures dipped by 0.3%, aligning with the Dow Jones Industrial Average futures, while Nasdaq futures decreased by just 0.1%.
Constellation Energy has disclosed a 20-year agreement with Meta, the parent company of Facebook, resulting in a 14% surge in its stock. This contract aims to supply nuclear power from its Illinois facility as demand for energy essential for artificial intelligence escalates. Last month, Google announced a comparable partnership with Elementl Power.
Dollar General’s shares rose 8% following analyst predictions of significantly increased profits alongside record sales. Despite needing to cut its 2024 outlook, the discount retailer has enhanced its 2025 projections, indicating resilience in a potentially weakening economy.
On the international front, both Beijing and Washington have somewhat reduced trade tensions by extending tariff exemptions on certain Chinese products, including solar manufacturing equipment, where the US has prioritized domestic production.
The US Trade Representative has renewed these exemptions, which were initially set to expire in three months, extending the deadline to August 31st.
The US is optimistic about a potential discussion between President Donald Trump and Chinese leader Xi Jinping later this week. However, a spokesperson from China’s foreign ministry stated that no information is currently available regarding this meeting.
A few weeks ago, the US and China agreed to suspend numerous proposed tariff increases that could have pushed the US economy towards recession.
Trump has cautioned that American businesses and households may feel some repercussions as he attempts to employ tariffs to bring more manufacturing jobs back to the country. This on-again, off-again rollout has created considerable uncertainty.
Despite indications of slowing manufacturing activity in May, the Chinese market has shown progress, particularly after the US and China suspended tariff hikes to secure a period of tariff stability.
A survey conducted by the Financial Media Group CAIXIN revealed that Chinese Purchasing Managers’ Index (PMI) reported a drop in factory output, new export orders, purchasing activity, and employment last month. Nevertheless, new orders were recorded at the fastest pace in two and a half years, according to the report.
Stephen Ins of Spi Asset Management commented that the situation represents a significant challenge for the backbone of the Chinese economy: small and medium-sized exporters caught in a fraught dynamic of diplomacy that swings between incentives and pressures rather than a true ceasefire.
Nevertheless, many investors have seemingly overlooked the negative news, assuming it could increase the chances of greater market support from Beijing.
Hong Kong’s Hang Seng index surged by 1.5% to 23,512.49, while Shanghai’s composite index climbed 0.4% to 3,361.98. Meanwhile, Tokyo’s Nikkei 225 dipped slightly by 0.1%, settling at 37,446.81.
The Korean market has remained closed due to the SNAP Presidential Election, triggered by the exile of Yoon Suk Yeol, the conservatives who currently face explosive trials on insurrection charges related to his brief implementation of Martial Law Ordinance in December.
In Australia, the S&P/ASX 200 rose by 0.6% to 8,466.70. Taiwan’s Taiex also gained 0.6%, while India’s Sensex fell by 0.5%.
During midday trading in Europe, Germany’s DAX remained flat, while Paris’ CAC 40 increased by 0.3%, and the UK’s FTSE 100 fell by 0.1%.
US benchmark crude increased by 36 cents to $62.88 per barrel, while the international standard Brent crude rose by 33 cents to $64.96.
The US dollar strengthened from 142.71 yen to 143.10 yen, whereas the euro dipped from $1.1443 to $1.1391.
Source: apnews.com