In today's premarket trading, the SPDR S&P 500 ETF Trust ($SPY) experienced a moderate increase of 0.5%. Market participants are closely monitoring the potential for a reduction in Federal Reserve interest rates, hoping for encouraging signs from the upcoming personal consumption expenditures (PCE) price index.
Similarly, the Invesco QQQ Trust ($QQQ), which tracks the tech-heavy Nasdaq, saw a rise of 0.9%, reflecting investor optimism in the face of economic uncertainty. Futures for US stocks also showed positive momentum, with S&P 500 index futures gaining 0.5%, Dow Jones Industrial Average futures up by 0.2%, and Nasdaq futures increasing by 0.8% ahead of the regular trading session.
Investors are anticipating the release of the July personal income and outlays report, which includes the Fed's favored inflation measure, the PCE price index, scheduled for 8:30 am ET. At 9:45 am ET, the Chicago Purchasing Managers Index (PMI) for August will be published, followed by the University of Michigan’s consumer sentiment report for the same month at 10 am ET.
Additionally, the Baker Hughes rig count, a key indicator of oil industry activity, is set to come out at 1 pm ET. In the cryptocurrency landscape, Bitcoin recorded a 0.5% increase, while the ProShares Bitcoin Strategy ETF ($BITO) climbed by 0.4%, indicating investor interest in digital assets as inflation hedges. **Sector Performances:** In the industrial sector, the Industrial Select Sector SPDR Fund ($XLI) rose 0.7%.
The Vanguard Industrials Index Fund ($VIS) and the iShares US Industrials ETF (IYJ) remained inactive in the premarket trading environment. Investor sentiment towards Intuitive Machines ($LUNR) dramatically shifted as shares surged by 20% before market hours after the company announced securing a $116.9 million contract with the National Aeronautics and Space Administration.
This news significantly highlights the potential for further growth in the aerospace industry. In the healthcare sector, the Health Care Select Sector SPDR Fund ($XLV) edged up 0.4%, while competitors such as the Vanguard Health Care Index Fund ($VHT), iShares US Healthcare ETF ($IYH), and iShares Biotechnology ETF ($IBB) did not see trading activity. Conversely, Alnylam Pharmaceuticals ($ALNY) witnessed a downturn with shares declining over 11% in premarket trading.
This drop followed the company's report that a phase 3 study of its vutrisiran investigational therapy yielded a statistically insignificant 30% reduction in the relative risk of mortality over three years in its treatment group. **Consumer Sector Activity:** The Consumer Staples Select Sector SPDR Fund ($XLP) remained stable, while the Vanguard Consumer Staples Fund ($VDC) went untraded.
The iShares US Consumer Staples ETF ($IYK) also presented no changes, whereas the Consumer Discretionary Select Sector SPDR Fund ($XLY) posted a modest gain of 0.5%. Both the VanEck Retail ETF ($RTH) and the SPDR S&P Retail ETF ($XRT) demonstrated inactivity. Alibaba Group Holding ($BABA) stood out with a 4.5% increase in shares amid news from Chinese regulators clearing the retailer of monopolistic allegations following a thorough three-year investigation, boosting investor confidence in the tech giant. In technology, the Technology Select Sector SPDR Fund (XLK) advanced by 0.8%, and the iShares US Technology ETF ($IYW) was 1% higher, while the iShares Expanded Tech Sector ETF ($IGM.US) remained stagnant.
The SPDR S&P Semiconductor ETF ($XSD) followed a similar trend by being inactive, but the iShares Semiconductor ETF ($SOXX) experienced a 1.9% increase, indicating resilient investor interest in semiconductor stocks. Intel ($INTC) was noted for a 3.5% rise in premarket activity after reports surfaced claiming that the company is consulting with investment banking firms Morgan Stanley ($MS) and Goldman Sachs Group ($GS) to enhance its strategic response to ongoing challenges. In the energy sector, the iShares US Energy ETF ($IYE) showed inactivity, while the Energy Select Sector SPDR Fund ($XLE) logged a slight increase of 0.2%.
Cool ($CLCO) shares rose by 4%, following an upgrade from Pareto Securities, raising the stock’s appeal from hold to buy. **Financial Overview:** The Financial Select Sector SPDR Fund (XLF) advanced marginally. Direxion Daily Financial Bull 3X Shares ($FAS.US) experienced a 1.1% uptick, whereas its bearish counterpart, Direxion Daily Financial Bear 3X Shares ($FAZ), saw a decrease of 0.9%.
UP Fintech Holding ($TIGR) shares increased by 1.3% after reporting higher revenue in the second quarter, catching investors' attention for potential growth. **Commodities Review:** As for commodities, front-month West Texas Intermediate crude oil prices rose by 0.3% high, reaching $76.14 per barrel on the New York Mercantile Exchange.
Natural gas prices also saw a marginal rise to $2.14 per 1 million British Thermal Units. The United States Oil Fund (USO) and the United States Natural Gas Fund (UNG) both declined by 0.2%. Gold futures for December declined by 0.3% to reach $2,552.40 an ounce on the Comex market, while silver futures faced a loss of 0.4%, settling at $29.88 an ounce.
SPDR Gold Shares ($GLD) went down by 0.1%, whereas the iShares Silver Trust ($SLV) increased by 0.3%, demonstrating the mixed sentiments among investors in precious metals..