Wall Street futures pointed moderately higher pre-bell Friday, as traders assessed values after five-straight trading sessions in the red. Traders continued to evaluate the implications of fluctuating interest rates and economic data on stock performance. Yields on benchmark 10-year US Treasuries held above 4.55% during the early morning hours, signifying ongoing investor caution regarding monetary policy.
This comes as markets react to various economic indicators that suggest the potential for both growth and volatility ahead. In futures trading, the S&P 500 rose by 0.3%, reflecting a modest rebound, while the Nasdaq inclined by 0.4%, signaling a positive outlook for tech stocks. The Dow Jones experienced a smaller increase of 0.2%, as it remains to be seen whether these gains will hold throughout the trading day. Asian exchanges traded unevenly overnight.
Yields on 10-year sovereign China bonds edged below 1.60%, marking another fresh all-time low and possibly indicating a soggy outlook for the huge Sino economy. Investors are closely watching these developments, as they could have significant repercussions on global markets. European bourses tracked moderately lower midday on the continent, influenced by the ongoing fluctuations in bond yields and uncertainty in economic data across various sectors. On the economic calendar, market participants have their eyes on the final ISM manufacturing index for December set to be released at 10 am ET.
This report is crucial as it provides insights into the health of the manufacturing sector, which is a key driver of the U.S. economy. Following this, the weekly EIA natural gas bulletin will be available at 10:30 am, providing potentially market-moving information on energy supplies. Additionally, the weekly Baker Hughes oil-and-gas domestic rig count will be posted at 1 pm, giving further insight into the U.S.
oil and natural gas production landscape. With energy prices in focus, this data is awaited by investors. Federal Reserve Richmond President Thomas Barkin is scheduled to speak at 11 am, addressing policy and economic conditions, followed by comments from the San Francisco President at 5:30 pm. These speeches could shed light on the Fed's approach to interest rates and economic stability as 2024 approaches. In pre-market action, bitcoin was trading at $96,528, reflecting the cryptocurrency's volatile nature.
Meanwhile, West Texas Intermediate crude oil traded lower at $72.97, as market dynamics continue to signal possible headwinds for crude prices. Additionally, 10-year US Treasuries offered 4.55%, maintaining a steady yield in light of the ongoing economic uncertainty. Spot gold traded for $2,656 an ounce, illustrating the precious metal’s role as a safe-haven asset amid market fluctuations..