The week begins with a drop in US stock futures as investors anticipate a busy week of company earnings that could provide further indications about the strength of the economy. Oil prices are climbing and gold has reached another record high due to escalating tensions in the Middle East. As of 8:00am, S&P futures are down 0.3% after the index capped its longest run of weekly gains this year. Futures for the tech-heavy Nasdaq 100 fell 0.5% while Nasdaq futures slide 0.6%, with major tech stocks all mostly lower: TSLA -0.7%, AMZN -0.3%, AAPL -0.3% pre-market after last week's furious rally.
In premarket trading, Boeing rose 3% after union workers struck out a tentative agreement with the plane maker that raises pay by 35% over four years. The workers are set to vote on Wednesday. Kenvue jumped 8% after the Wall Street Journal reported activist investor Starboard Value has built a stake in consumer-products company, seeking changes that would boost the Tylenol maker’s stock price.
This year’s 23% bounce has been concentrated in a handful of the biggest technology stocks. “Optimism about a soft-landing abounds, but that narrative is much more relevant for the US,” said Daniel Murray, chief executive officer of EFG Asset Management in Switzerland. “The European macro backdrop is much more vulnerable, and that is weighing on investor sentiment towards European stocks.”
In commodities, oil rebounded from last week's 8% rout; Brent crude traded above $74 per barrel, rising almost 2% on the session. In the Middle East, Israel is discussing its attack on Iran after a Hezbollah drone exploded near Prime Minister Benjamin Netanyahu’s private home at the weekend. Investors are also boosting gold holdings ahead of what’s expected to be a tight US presidential election. Spot gold has picked up where it left off on Friday, rising $15 to another record high.
## Bottom Line
The drop in US stock futures and the rise in oil and gold prices indicate a week of uncertainty and potential volatility in the market. Investors will be watching company earnings closely for signs of economic strength or weakness. The escalating tensions in the Middle East are also likely to impact the market, particularly oil and gold prices. What are your thoughts on these developments? Share this article with your friends and let us know your views. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
The week begins with a drop in US stock futures as investors anticipate a busy week of company earnings that could provide further indications about the strength of the economy. Oil prices are climbing and gold has reached another record high due to escalating tensions in the Middle East. As of 8:00am, S&P futures are down 0.3% after the index capped its longest run of weekly gains this year. Futures for the tech-heavy Nasdaq 100 fell 0.5% while Nasdaq futures slide 0.6%, with major tech stocks all mostly lower: TSLA -0.7%, AMZN -0.3%, AAPL -0.3% pre-market after last week's furious rally.
In premarket trading, Boeing rose 3% after union workers struck out a tentative agreement with the plane maker that raises pay by 35% over four years. The workers are set to vote on Wednesday. Kenvue jumped 8% after the Wall Street Journal reported activist investor Starboard Value has built a stake in consumer-products company, seeking changes that would boost the Tylenol maker’s stock price.
This year’s 23% bounce has been concentrated in a handful of the biggest technology stocks. “Optimism about a soft-landing abounds, but that narrative is much more relevant for the US,” said Daniel Murray, chief executive officer of EFG Asset Management in Switzerland. “The European macro backdrop is much more vulnerable, and that is weighing on investor sentiment towards European stocks.”
In commodities, oil rebounded from last week's 8% rout; Brent crude traded above $74 per barrel, rising almost 2% on the session. In the Middle East, Israel is discussing its attack on Iran after a Hezbollah drone exploded near Prime Minister Benjamin Netanyahu’s private home at the weekend. Investors are also boosting gold holdings ahead of what’s expected to be a tight US presidential election. Spot gold has picked up where it left off on Friday, rising $15 to another record high.
## Bottom Line
The drop in US stock futures and the rise in oil and gold prices indicate a week of uncertainty and potential volatility in the market. Investors will be watching company earnings closely for signs of economic strength or weakness. The escalating tensions in the Middle East are also likely to impact the market, particularly oil and gold prices. What are your thoughts on these developments? Share this article with your friends and let us know your views. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
