Good morning, OptionsPlayers! Here’s what you need to know before the market opens today:
U.S. Stock Futures Mixed as New Month Begins
As we kick off a new month of trading, U.S. stock futures are mixed following strong gains across the major indices in May. On Friday, traders were parsing through mixed economic signals: while inflationary pressures showed some persistence, consumer spending appeared to weaken. Investors are now giving roughly equal odds to a potential Federal Reserve interest rate cut in September, with an increased likelihood of a second cut in December.
Key U.S. Jobs Report on the Horizon
This week’s highlight will be Friday’s nonfarm payrolls report, which is expected to show continued resilience in the U.S. labor market despite high interest rates. Economists predict the economy added 185,000 jobs in May, a modest increase from April. Market sentiment hinges on this report, as a robust labor market might delay rate cuts, while a softer report could ease inflationary pressures.
Policymakers, including Minneapolis Fed President Neel Kashkari, have stressed the need for patience on rate cuts, emphasizing the importance of more data confirming a sustained reduction in inflation towards the 2% target.
Nvidia Unveils New AI Chip Model
In a surprising move, Nvidia has announced its latest AI-optimized chip architecture, “Rubin,” set to ship in 2026. This announcement comes ahead of the rollout of their next-generation data center processors, “Blackwell,” scheduled to follow the current “Hopper” chips. Nvidia, which has seen a significant boost in market value recently, is pushing to stay ahead of competition from AMD, Intel, and in-house chips from tech giants like Alphabet and Microsoft.
In related news, AMD also revealed updates to its AI chip lineup, with the MI325X accelerator available now and the MI350 series coming in 2025.
China’s Manufacturing Activity Beats Expectations
China’s manufacturing sector showed unexpected growth in May, according to the Caixin PMI, which read 51.7, surpassing expectations of 51.6 and April’s 51.4. This data contrasts with the official PMI, which indicated a contraction. The Caixin PMI focuses on smaller, private businesses primarily in southern China, while the official survey covers larger, state-run enterprises in the north. Together, these surveys provide a comprehensive view of China’s economic health.
Oil Prices Edge Higher on OPEC+ Production Cuts Extension
Oil prices have ticked up slightly following OPEC+’s decision to extend production cuts into 2025. The group will maintain reductions of 3.6 million barrels per day until the end of 2025, with an additional 2.2 million barrels per day in cuts being phased out gradually from October 2023 to September 2025.
Apple’s Worldwide Developers Conference on the Horizon
Looking ahead, Apple’s annual Worldwide Developers Conference (WWDC) is set for June 10-14. In Apple’s recent earnings call, CEO Tim Cook expressed optimism about the company’s future in generative AI, hinting at exciting announcements to come. This event is highly anticipated, with expectations of major software updates and possibly new AI-driven initiatives.
Notable Economic Data
- Tuesday: JOLTS
- Friday: NFP
Today I’ll be watching BABA as we entered Friday (chat play). I may alert a long play in it as well so stay tuned. GME will be ripe to short and AMD can run on its latest chip news. See you all in chat.
Stay tuned for more updates throughout the week as we keep you informed on market movements and key economic indicators.
Happy trading!
The OptionsPlayers.com Team
If you want to get the plays of the day then signup for Gold, and get a FREE TRIALIf you want to get the plays of the day then signup for Gold, and get a FREE TRIAL
Responses