2023-10-30 09:55:17
U.S. stock index futures rose Monday as tensions in the Middle East failed to dent investor sentiment ahead of a busy week of earnings reports and rate decisions. interest from the Federal Reserve.
Israeli troops intensified their ground operations in Gaza early Monday, with Palestinians in the enclave reporting fierce air and artillery strikes as the conflict enters its fourth week.
However, the clashes had little impact on US stock markets, with large market caps such as Nvidia, Amazon.com and Tesla rising between 0.9% and 1.6% in pre-market trading.
“The ground offensive in Gaza will continue to cause concern, but it was widely expected and that’s why I don’t think you saw a particularly negative reaction in the markets today,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“In the United States, there has been a renewed emphasis on the resilience of the American economy and that this is a good thing rather than an indicator of a possible rise in interest rates. interest.
Geopolitical concerns and rising Treasury yields have weighed on U.S. stocks this month, sending the benchmark S&P 500 down more than 10% from its intraday high in July.
On Monday, the yield on the ten-year note stood at 4.86%, after crossing the 5% mark at the start of the month.
Adding to bond market concerns, the U.S. Treasury is likely to increase the volume of bill, note and bond auctions in the fourth quarter when it announces this week its financing plans to close a widening budget deficit. worsen. A subsequent rise in yields could put further pressure on stocks.
With inflation gradually decreasing in the United States, the Federal Reserve is expected to keep interest rates unchanged following its November 1 meeting, according to the CME Group’s Fedwatch tool.
However, parts of the economy have proven resilient, raising concerns that the central bank may signal a willingness to keep rates at their current level for longer than expected.
A new round of data on the U.S. economy this week, ending with October’s nonfarm payrolls report on Friday, will be one to watch for further clues about the Fed’s monetary policy trajectory.
Investors are also awaiting quarterly results from companies including McDonald’s, Apple, Pfizer and Eli Lilly, as the third-quarter earnings season has reached the halfway mark.
As of 5:22 a.m. ET, the Dow e-minis was up 178 points, or 0.55%, the S&P 500 e-minis was up 29 points, or 0.7%, and the Nasdaq 100 e-minis was up 29 points, or 0.7%, and the Nasdaq 100 e-minis was up 29 points, or 0.7%, minis was up 123.5 points, or 0.87%.
Among individual stocks, Coherus Biosciences jumped 15.2% in premarket trading as the U.S. health regulator approved the company’s treatment for nasopharyngeal cancer. (Reporting by Amruta Khandekar; Editing by Maju Samuel)
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