US futures edge up on growing Fed rate-cut bets, earnings in focus
NEW YORK : Wall Street futures edged higher today, building on momentum from the previous session as expectations for the Federal Reserve's (Fed) interest rate cuts grew, while investors assessed a new round of major corporate earnings.
At 5.23am, Dow E-minis were up 46 points, or 0.1%, S&P 500 E-minis were up 7.75 points, or 0.12% and Nasdaq 100 E-minis were up 34.25 points, or 0.15%.
Yesterday, Wall Street recorded its best session since May 27 and recouped losses from Friday's selloff as weaker-than-expected July jobs data and significant downward revisions to previous months' data intensified bets for a September interest rate cut.
According to CME Group's Fedwatch tool, the odds for a September rate cut now stand at 88.2%, compared with 63.3% a week earlier.
Market participants expect at least two quarter-point cuts by the end of the year.
In another twist, President Donald Trump's decision to fire the head of the bureau of labor statistics, responsible for past jobs data, stoked investors' fears about the integrity of economic data.
Federal Reserve governor Adriana Kugler's surprise resignation on Friday also opened avenues for Trump to shake up the Fed's leadership earlier than expected.
The US president has repeatedly criticised Fed chair Jerome Powell for not cutting interest rates.
'US growth resilience has been relatively remarkable so far, even if the US job market is raising doubts about what's coming next,' said Amelie Derambure, senior multi-asset portfolio manager at Amundi.
The final July reading of S&P Global's Purchasing Managers' Index is scheduled for release at 9.45am, followed by the Institute for Supply Management's non-manufacturing PMI at 10am.
Investors also weighed the impact of US tariffs on global economies and corporate earnings.
Yesterday, Trump threatened to raise import tariffs on goods from India over its Russian oil purchases, while New Delhi called the attack 'unjustified' and vowed to protect its economic interests.
Markets were also still watching if Trump will decide to extend a trade truce with China that expires on Aug 12, or potentially let tariffs shoot back up to triple-digits.
Earnings from major names due today include Advanced Micro Devices, Pfizer, Snap, Rivian and Yum Brands.
Among other movers, Palantir Technologies rose 5.4% in premarket trading after raising its annual revenue forecast for the second time, driven by strong demand for its AI-linked services.
Online telehealth company Hims and Hers Health crashed 12.4% after missing Street estimates for second quarter (Q2) revenue, as subscribers for its compounded versions of weight-loss drugs declined.
Inspire Medical Systems sank 25.3% after its Q2 earnings failed to impress investors.
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Malay Mail
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