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U.S. equity futures moved higher Friday as investors entered the final trading day of the second quarter focused on a key inflation reading and the fallout from last night’s Presidential debates.
The S&P 500, which has printed more than 30 record highs so far this year, carries a quarterly gain of 4.35% heading into the Friday session, powered largely by the surge in AI-related tech stocks, while the Nasdaq is up more than 9%.
Those levels will be tested today by a a key May inflation report, the PCE price index, that is expected to show the softest monthly pressures in more than three years.
The PCE gauge, which is closely tracked by Federal Reserve officials, is likely to show headline and core inflation eased to 2.6% in May, added further fuel to market bets that the Fed will begin reducing its benchmark interest rate in September.
Benchmark 10-year Treasury note yields were little-changed at 4.31% heading into the data release at 8:30 am Eastern time, with 2-year notes pegged at 4.729%.
Fed Chairman Jerome Powell
The U.S. dollar index, meanwhile, eased from a year-to-date high in overnight trading that was tied in part to what analysts have said was a poor performance from President Joe Biden in last night’s debate with his predecessor and challenger, Donald Trump.
Biden appeared shaky and uncertain during key moments in the 90 minute contest, and misquoted crucial economic statistics as he defended his record against an onslaught of attacks by the former President.
The dollar was last seen trading 0.02% lower on the session, but close to the highest levels of the year against a basket of its global peers at 105.881.
A major reshuffle of the Russel indices, which include both small and large-cap stocks, will also wrap up Friday will the likely elevation of many of the AI-related names that have powered markets higher for much of the past year.
Heading into the start of the trading day, futures contracts tied to the S&P 500 suggest an 18 point opening bell gain, while those linked to the Dow Jones Industrial Average are priced for a 30-point bump.
The Nasdaq, meanwhile, is called 75 points higher with premarket gains for Nvidia (NVDA) , Micron (MU) , Tesla (TSLA) and Apple (AAPL) powering the advance.
Other stocks on the move include Nike (NKE) , which plunged nearly 15% in premarket following a disappointing fourth quarter earnings report that included a gloomy outlook for sales over the coming financial year.
Trump Media & Technology Group (DJT) shares, meanwhile, were marked 10% higher at $40.20 each.
In overseas markets, Europe’s Stoxx 600 was marked 0.31% higher heading into Sunday’s parliamentary elections in France, while Britain’s FTSE 100 rose 0.58% in London with next week’s national elections in focus.
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Overnight in Asia, the yen held steady at around 106.58 against the surging U.S. dollar, suggesting at least the chance of intervention from government officials in Tokyo, with the Nikkei rising 0.61% into the close of trading.
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