Futures rise in countdown to key inflation data, Trump Media spikes

[June 28, 2024]  (Reuters) - Nasdaq and S&P 500 futures rose on Friday on hopes of inflation moderating in a report closely monitored by the Federal Reserve, while Trump Media & Technology Group's shares jumped after a weak showing from Joe Biden in a presidential debate.

The Commerce Department's data is expected to show personal consumption expenditures (PCE) price index remained flat in May after rising 0.3% in the previous month, with the core figure seen rising 0.1% after a 0.2% gain the month before.

Deutsche Bank analysts expect the year-on-year PCE to come in at an over three-year low, which although promising news for the Fed, would not be enough to assure the central bank after the unexpected inflation spike seen back in the first quarter.

Even in the face of the Fed guiding for just one interest rate cut this year in December, market participants still expect two cuts starting September, hoping for a sustained downtrend in price pressures and as the economy remains susceptible to decades-high interest rate.

Chances of a 25-basis-point cut in September stand at 60%, as per LSEG FedWatch data.

Megacaps including Microsoft, Nvidia, Alphabet and Amazon.com edged higher in premarket trading.

At 5:33 a.m. ET, Dow e-minis were up 38 points, or 0.1%, S&P 500 e-minis were up 18.75 points, or 0.34%, and Nasdaq 100 e-minis were up 76 points, or 0.38%.

Both the S&P 500 and the Nasdaq indexes were set for gains in a week marked by a short-lived rout in AI-related stocks, Amazon.com hitting $2 trillion market value for the first time, quarterly earnings from the likes of FedEx and Micron Technology, and a mixed bag of economic data.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 24, 2024. REUTERS/Brendan McDermid/File Photo

Among top movers, Trump Media & Technology Group and other stocks linked to former President Donald Trump such as Phunware and Rumble rose between 1% and 8%.

On Thursday, President Joe Biden delivered a shaky, halting performance while rival Trump battered him with a series of often false attacks at their debate, ahead of the November election.

"As the presidential debate clearly illustrated, the prospect of a Trump presidency is generating significant enthusiasm in the financial markets," said Nigel Green, CEO of deVere Group.

"Wall Street's perceiving that the policies likely to be enacted under a Trump administration could be broadly more beneficial."

Investors also geared up for the final reconstitution of the Russell benchmark indexes during the day, with the furious rally in AI-related stocks expected to leave an outsized imprint on their final shape.

Among others, Nike slumped 14.2% after forecasting a surprise drop in fiscal 2025 revenue. Rivals Roger Federer-backed On and Under Armour were also down over 2% each.

(Reporting by Ankika Biswas in Bengaluru; Editing by Maju Samuel)

[© 2024 Thomson Reuters. All rights reserved.]
This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.