As Wall Street gears up for Friday's trading session, futures are indicating a robust positive outlook as traders anticipate an upcoming inflation report that could influence market movements. The focus now shifts to Washington, where the June Personal Consumption Expenditures (PCE) core price index is scheduled to be released at 8:30 am ET.
Analysts are predicting a 2.5% year-over-year increase in this essential inflation measure, which is closely monitored by the Federal Reserve. In pre-market activity, futures are reflecting optimism with the S&P 500 showing a rise of 0.8%, while the Nasdaq has seen an incline of 1% and the Dow Jones Industrial Average gaining 0.6%.
This positive sentiment appears to be in response to recent sell-offs in the tech sector, as investors are now on the lookout for value opportunities. A significant highlight in pre-market trading is the impressive performance of 3M, whose shares surged 5.9% following the industrial conglomerate's announcement of quarterly earnings and revenue that exceeded investor expectations. Turning our gaze to Asian markets, trading has been uneven overnight.
Notably, yields on 10-year sovereign bonds in mainland China dipped below 2.20%, reaching record lows, raising concerns about economic growth prospects. European markets have joined the upward trend, tracking moderately higher as midday approaches. Notably, tech shares are registering gains, aligning with the positive mood in the US markets. In another notable development, online education platform Coursera (COUR) saw its shares rise spectacularly by 26.4% in pre-bell trading after reporting Q2 results that significantly surpassed market expectations, highlighting the growing demand for online education. Investors are also looking forward to other economic indicators today, such as the University of Michigan's consumer sentiment bulletin for July, scheduled for release at 10 am ET, and the Baker Hughes domestic oil-and-gas rig count, which will be published at 1 pm. In the cryptocurrency market, Bitcoin is trading at an impressive $67,257.
Meanwhile, West Texas Intermediate crude oil has dipped slightly to $77.97, and 10-year US Treasuries are yielding 4.25%. Gold is currently priced at $2,374 per ounce, indicating volatility in safe-haven assets amidst fluctuating market conditions. Overall, with the PCE core inflation report on the horizon and a tech sector recovering from recent downturns, traders and investors remain cautiously optimistic about navigating the current financial landscape..