Stock Futures Surge with Nvidia Leading the Charge
US stock futures are on the rise following the Juneteenth holiday, tracking gains in European stocks amidst a flurry of central bank decisions. This upward momentum could push the S&P 500 and Nasdaq 100 to new record highs if sustained through the regular session. While Treasuries are experiencing a slight dip, the dollar has edged marginally higher.
Nvidia's Relentless Rise Continues -
At the forefront of this market rally is Nvidia, the chipmaker that recently became the most valuable company in the world, surpassing giants like Microsoft and Apple. Nvidia's shares are up by another 4% in premarket trading, which could add an astonishing $130 billion to its market value.
Treasuries on the Verge of Breaking Even -
Despite today's decline, US Treasuries are close to breaking even for the year. Investor optimism that cooling US inflation will prompt the Federal Reserve to cut rates sooner and more significantly than currently signaled is helping to cap yields.
China's Monetary Policy Moves -
China has set its daily reference rate for the yuan at its weakest level since November, coinciding with the dollar's near-peak performance for the year. Additionally, China's central bank has indicated potential trading of government bonds in the secondary market to better regulate liquidity—a significant shift in the country's monetary policy landscape.
Corporate Earnings and Economic Calendar -
Today's earnings reports include consultant Accenture, grocery chain Kroger, and Olive Garden-owner Darden Restaurants. The economic calendar is relatively quiet, with market participants paying attention to speeches from Federal Reserve officials Thomas Barkin and Neel Kashkari.
Stay tuned for more updates as the market evolves throughout the day.