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U.S. Stock Futures Steady as Earnings Uncertainty Looms


Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.

On Thursday night, U.S. stock futures showed little movement, with the Dow Jones Industrial Average futures dropping slightly by 18 points or 0.05%. S&P 500 futures remained unchanged, while Nasdaq 100 futures rose 0.07%.

During regular trading on Thursday, the Dow decreased by approximately 110 points or 0.33%. The S&P 500 dropped 0.6%, and the Nasdaq Composite, which has a heavier focus on technology stocks, lost 0.8%. Tesla’s shares were one of the factors dragging down the Nasdaq, with a decline of nearly 10% after the company reported a sharp drop in net income for the first quarter compared to the same period in the previous year.

This week, the major U.S. stock market indices are likely to finish in the red, with the Dow and S&P 500 on track for their worst weekly performances since March. This earnings season brings more macro-level uncertainty than in the recent past.

Earnings season continues on Friday, with Procter & Gamble, Regions Financial, SLB, Freeport-McMoRan, and HCA Healthcare set to report earnings before the market opens. Investors will also keep an eye on the Purchasing Managers’ Index for the manufacturing and services sectors to gain insight into the economy.

Data by Bloomberg

On Thursday, all sectors in the stock market experienced a price decline of 0.60%, except for the Consumer Staples sector which increased by 0.06%. The Real Estate and Consumer Discretionary sectors saw the largest declines, at 1.19% and 1.48%, respectively. The Information Technology and Communication Services sectors also experienced significant declines, both down by over 0.75%. The remaining sectors saw smaller declines, ranging from 0.05% to 0.43%.

Major Pair Movement

Data by vtmarkets.com

On Thursday, disappointing U.S. economic data caused Treasury yields to fall, resulting in the dollar weakening and increasing the likelihood of further rate cuts by the Federal Reserve. The data included jobless claims, Philly Fed, existing homes, and the Conference Board’s Leading Economic Index, which all signaled that the battle against inflation would negatively impact growth and asset demand.

Despite a 3bp rise in 2-year bund-Treasury yield spreads, the EUR/USD remained relatively unchanged. The European Central Bank is expected to raise rates more than the Fed this year but holds hikes for a longer period.

While JGB yields remained steady, the yen advanced against the euro and sterling due to the upcoming Japanese CPI report and Bank of Japan meeting. The BoJ is likely to maintain its policy stance but may tweak its yield curve control if wage settlements remain strong. GBP/USD recovered from Thursday’s lows but still finished down 0.05%.

Friday will feature April S&P Global PMIs and retreating oil prices will also be watched as a global recession risk indicator.

Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.

Economic Data

CurrencyDataTime (GMT + 8)Forecast
EURFrench Flash Manufacturing PMI15:1547.9
EURFrench Flash Services PMI15:1553.6
EURGerman Flash Manufacturing PMI15:3045.6
EURGerman Flash Services PMI15:3053.3
GBPFlash Manufacturing PMI16:3048.3
GBPFlash Services PMI16:3052.9
USDFlash Manufacturing PMI21:4549.0
USDFlash Services PMI21:4551.5