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U.S. stocks rallied on Friday after a labor market report
showing moderating wage growth in May indicated the U.S. central
bank may skip a rate hike next week, while investors welcomed a
Washington deal that avoided a catastrophic debt default.
The benchmark S&P 500 closed at a fresh nine-month high on
Friday and the tech-heavy Nasdaq scaled a new one-year peak,
underpinned by gains in megacap technology stocks that have
outperformed the broader market this year.
Traders are pricing in a 78.2% chance that the Fed will hold
interest rates at the conclusion of its June 13-14 policy
meeting, according to CME Group's Fedwatch tool, though they
expect another hike in July.
Surveys from S&P Global and Institute for Supply Management on
U.S. services sector activity in May are due after the opening
bell, while Fed Cleveland President Loretta Mester is slated to
speak at an event later in the day.
At 5:55 a.m. ET, Dow e-minis were up 40 points, or 0.12%, S&P
500 e-minis were up 0.25 points, or 0.01%, and Nasdaq 100
e-minis were down 39.25 points, or 0.27%.
Energy stocks including Exxon Mobil Corp, Chevron Corp and
Schlumberger Ltd rose about 1% each in premarket trading, as oil
prices jumped more than 2% after top global exporter Saudi
Arabia pledged to cut production by another 1 million barrels
per day from July. [O/R]
Palo Alto Networks Inc climbed 5.3% as the cybersecurity firm
looks set to replace Dish Network in the S&P 500 index. Dish
shares tumbled 7.8%.
Big U.S. banks were mixed after the Wall Street Journal reported
that U.S. regulators were preparing to tighten rules for large
banks, which could include raising their capital requirements by
20% on average. Bank of America Corp climbed 0.2%, while
Citigroup Inc slipped 0.2%.
Apple Inc edged up 0.6% ahead of its annual software developer
conference, where it is widely expected to announce a new
mixed-reality headset.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Vinay
Dwivedi)
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