On Friday morning, Wall Street futures indicated a moderate increase ahead of market opening, driven by a strengthening belief that the U.S. economy is positioned to skirt a recession. This sentiment coincides with expectations that the Federal Reserve may be gearing up to implement reductions in interest rates. Recent data, released on Thursday, revealed a revision in the U.S.
economic expansion rate, now pegged at an annual rate of 3% for the second quarter. This marks an improvement from the previously reported figure of 2.8%, showing a robust performance that enhances investor confidence. Market participants are keenly anticipating the release of the July personal income and outlays report, scheduled for 8:30 AM ET.
This bulletin will encompass the Federal Reserve's favorite inflation measure: the personal consumption expenditure (PCE) price index. Economic analysts predict a 2.5% year-on-year increase in the headline PCE, along with a 2.7% rise in the core PCE index, which excludes volatile food and energy prices. In pre-market trading, the S&P 500 index climbed 0.3%, and the Nasdaq saw an uptick of 0.6%.
Meanwhile, the Dow Jones index is on the hunt for a new peak, with a modest gain of 0.2%. International markets reflected positive sentiment overnight as Asian exchanges experienced significant upsides. Notably, Mumbai’s Sensex index achieved unprecedented heights, underscoring a bullish trend. As the day progressed into midday European trading, markets on the continent followed suit, showing moderate gains and also approaching record highs. In a noteworthy corporate update, Marvell Technology, identified by its ticker MRVL, surged nearly 11% in pre-bell trading.
This increase came after the semiconductor designer released strong second-quarter results coupled with optimistic guidance for the third quarter, signaling promising prospects in the tech sector. On the economic calendar, alongside the anticipated PCE data, investors are also looking forward to the Chicago Purchasing Managers' Index (PMI) report for August, set for release at 9:45 AM ET.
Additionally, the University of Michigan will disclose its consumer sentiment report for August at 10 AM, a significant indicator of consumer behavior. Further adding to the day’s trading essentials is the weekly Baker Hughes oil and gas rig count, which will be posted at 1 PM ET, providing insights into the energy sector's ongoing developments. In the realm of commodities and cryptocurrency, pre-market action showed Bitcoin trading at $59,602, while West Texas Intermediate crude oil prices floated higher at $76.01.
The yield on 10-year U.S. Treasuries stood at 3.85%, and spot gold was priced at $2,518 an ounce, indicating a diverse and dynamic investment landscape. The mentions of $US30 and $US500 highlight the prominent indices that continue to reflect the overall economic health and investor sentiments in the United States..