U.S. Futures Mixed Ahead of Inflation Data, Micron Earnings
By EC Assets · Published
U.S. stock futures showed mixed movements on Wednesday as markets awaited the release of August inflation figures. Investors are closely monitoring data that could influence Federal Reserve policy decisions. Micron Technology's upcoming earnings report also remains a key focus for market participants. S&P 500 futures rose 0.2% in early trading. Dow Jones Industrial Average futures were up 0.5%, while Nasdaq 100 futures registered a decline of 0.1%. U.S. equity futures traded higher on Wednesday as markets prepared for the August inflation figures. Bitcoin was trading below $84,000 ahead of the PCE inflation data. Traders are waiting on the Federal Reserve's favored inflation gauge. This follows a month of oil-driven rate-hike bets. These bets sent 30-year Treasury yields to their highest levels since 2002. Pressure on U.S. Treasurys eased after the 30-year yield reached this peak. US stock futures inched up as yields eased and the inflation report loomed. US equity market investors are focusing on government bond market yields this week. They are also gauging economic strength through non-farm payrolls and the Federal Reserve's preferred inflation measure. Investors are additionally monitoring oil supply developments and crude oil prices this week. Micron's results are due this week. The demand for computer memory has been pushing prices higher for DRAM and NAND memory chips throughout the year. These price increases have boosted sales, profit margins, and bottom-line profits for Micron Technology. Boeing shares rose approximately 3% in premarket trading on Wednesday. This increase followed the U.S. Navy's selection of Boeing to develop its next-generation fighter jet. Boeing was at risk of losing all fighter-jet production before this new Navy contract. The aerospace company secured a U.S. Navy deal to develop a next-generation fighter jet. Some strategists find value in U.S. Treasury notes now. One strategist, who has been critical of Treasury bonds since 2020, now finds a "big fat cushion" in 5.25% yields. Investors have grown accustomed to returns distorted by artificially low interest rates. This strategist believes 5% on bonds and 6% on stocks are more realistic returns. This article is intended for informational purposes only. It does not constitute investment advice.
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