U.S. stock futures rise amid increased rate cut expectations
U.S. stock futures rose Monday, rebounding following the payrolls-inspired sell-off at the end of the prior week, with investors buoyed by the prospect of lower interest rates, News.az reports citing Xinhua.
At 06:49 ET (10:49 GMT), Dow Jones Futures gained 252 points, or 0.6%, S&P 500 Futures rose 39 points, or 0.6%, and Nasdaq 100 Futures climbed 177 points, or 0.8%.
The main averages on Wall Street sank on Friday, with the benchmark S&P 500 registering its worst day in more than two months, after U.S. President Donald Trump signed an executive order on Friday imposing steep tariffs on imports from nearly 70 countries.
A soft jobs report, which featured heavy downward revisions, also weighed on sentiment, as did Trump’s dismissal of the head of the statistics bureau charged with compiling the jobs data, arguing -- without evidence -- that the numbers were "rigged." Analysts flagged that the firing casts doubt over the longstanding reliability of U.S. economic data.
Weak jobs data lifts rate cut hopes
The U.S. economic data slate centers largely around factory orders for June, amid worries about the health of the U.S. economy after the U.S. Labor Department reported on Friday that nonfarm payrolls rose by only 73,000 in July.
This was well below the expected 110,000, and May and June figures were also revised downward by a combined 258,000 jobs.
Investors viewed this slowdown as a clear signal that the labor market is cooling, prompting the odds of a Federal Reserve rate cut in September to surge to over 80%.
AMD, Caterpillar , Disney earnings awaited
Looking ahead, attention shifts to a packed earnings calendar. More than 150 companies are set to report this week, including major names across tech, industrials, and consumer sectors.
The corporate earnings season has been largely solid so far, which has helped to underline the staying power of a multi-year boom in enthusiasm around the applications of artificial intelligence.
On Tuesday, Advanced Micro Devices (AMD) (NASDAQ:AMD) and Caterpillar (NYSE:CAT) will report, with investors watching for insight into semiconductor demand and global industrial activity.
Wednesday will bring results from Walt Disney (NYSE:DIS), McDonald’s (NYSE:MCD), and Uber Technologies (NYSE:UBER).
Elsewhere, Berkshire Hathaway (NYSE:BRKb) has posted a $3.76 billion write-down on its stake in consumer food company Kraft Heinz (NASDAQ:KHC), while a fall in insurance underwriting premiums also dented second-quarter returns from Warren Buffett’s sprawling conglomerate.
Crude falls on additional OPEC+ supply
Crude prices fell Monday, after a group of top producers agreed to another large production hike in September, adding to global supply.
At 06:49 ET, Brent futures slipped 1.6% to $68.51 a barrel, and U.S. West Texas Intermediate crude futures fell 1.6% to $66.23 a barrel.
The Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September.
The move, in line with market expectations, marks a full and early reversal of OPEC+’s largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of world demand.
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