U.S. Stock Futures Edge Higher at Start of Holiday-Shortened Week
U.S. stock futures edged higher Monday, kicking off a holiday-shortened week that culminates with Friday’s highly anticipated nonfarm payrolls report. Wall Street is coming off a mixed quarter, with the S&P 500 and Nasdaq Composite adding 3.9% and 8.3%, respectively, driven by excitement around artificial intelligence. Meanwhile, the Dow Jones Industrial Average saw a 1.7% decline. Notably, the Nasdaq recorded its third consecutive positive quarter for the first time since a five-quarter streak that ended in 2021.
Investors are zeroing in on Friday’s nonfarm payrolls report, seeking fresh indications on the timing of potential Federal Reserve interest rate cuts. Additionally, Fed Chair Jerome Powell will appear at the European Central Bank’s annual forum in Sintra, Portugal on Tuesday. Wednesday’s release of the minutes from the Fed’s June meeting will also be closely watched for insights into the central bank’s economic outlook and monetary policy considerations.
EU Set to Charge Meta Platforms
According to the Financial Times, the European Union is set to charge Meta Platforms with violating the bloc’s digital regulations. Regulators are reportedly concerned about Meta’s “pay or consent” model, arguing that it offers a false choice by pressuring users to allow their personal data to be tracked for advertising purposes. This move follows the EU’s Digital Markets Act, aimed at curbing the power of ‘Big Tech’ firms and promoting fair competition for smaller companies. Last week, the region’s regulators also charged Apple with breaching tech rules.
Boeing to Acquire Spirit AeroSystems
Boeing announced Monday its plan to acquire Spirit AeroSystems in a $4.7 billion all-stock deal, finalizing an agreement with the key supplier after prolonged negotiations complicated by Spirit’s dealings with Boeing’s competitor Airbus. The acquisition, totaling approximately $8.3 billion including debt, aims to address and resolve the quality issues Spirit has faced in recent years. As part of the deal, Airbus will receive $559 million in compensation, and will assume control of core activities at four of Spirit’s plants. Spirit also plans to divest operations in Scotland, Malaysia, and Northern Ireland.
National Rally Prevails in French Elections
France’s far-right National Rally party and its allies secured 33% of the national popular vote in the first round of parliamentary elections, according to the interior ministry. The leftwing New Popular Front garnered 28%, while President Emmanuel Macron’s centrist bloc obtained 20%. This result led to a boost in the euro, reaching a two-week high, and a rise in the CAC 40, France’s benchmark equity index. Investors, initially concerned about spending increases pledged by both the far-right and left-wing alliances amidst France’s high budget deficit, saw the outcome as better than feared. However, more volatility is expected ahead of next Sunday’s runoff.
China’s Private PMI Boosts Crude Prices
The Chinese economy showed signs of growth in June, lifting crude prices on Monday with hopes that the world’s largest importer could capitalize on global economic momentum. China’s Caixin/S&P Global manufacturing purchasing managers’ index (PMI), a private survey, rose to 51.8 in June from 51.7 in May, marking the fastest growth in over three years and staying above the 50.0 threshold that separates expansion from contraction.
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