US stock futures climbed late Sunday after the Independence Day break, with Nasdaq 100 futures jumping 1.33%, S&P 500 futures rising 0.53%, and Dow futures up 0.15% at 8:11 PM EDT. The gains extended the previous week's rally as investors await the Federal Reserve's June meeting minutes due Wednesday. The Q2 earnings season is set to begin full throttle next week with major US banks reporting from July 14, while PepsiCo results are expected Thursday and Delta Air Lines on Friday.
Dow Hits Record High as Indexes Close Mixed Thursday
The Dow Jones Industrial Average jumped to record highs on Thursday, adding nearly 600 points to close up 1.14% at 52,900.07. The S&P 500 closed flat at 7,483.24, while the Nasdaq lost more than 200 points to close down 0.8% at 25,832.67. US stock and bond markets were closed Friday in observance of Independence Day. All three indexes closed in the green for the week, climbing about 2% each.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), Invesco QQQ Trust (QQQ), and SPDR Dow Jones Industrial Average ETF Trust (DIA) were all trading higher at the time of writing. The iShares 20+ Year Treasury Bond ETF (TLT) was trading down 0.09%.
Fed June Minutes Due Wednesday Amid Rate Hold Expectations
The Federal Reserve's June meeting minutes are set to be released on Wednesday. This was Kevin Warsh's first meeting as Fed Chair. The central bank held the key interest rates steady at 3.5% to 3.75%. According to data from the CME FedWatch tool, the possibility of the Fed holding rates steady is at 78.1%, while odds of a rate hike are at 21.9%.
US payrolls released last week rose by 57,000 in June, missing Wall Street expectations. Warsh did not provide clear signals about the central bank's policy decisions at the ECB Forum in Sintra, Portugal, although he highlighted "high" inflation and added that policymakers will have a "good debate" when they meet in four weeks.
Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments, told Reuters: "I think it's going to be interesting to see how the discussion went around the table, how incrementally hawkish are they leaning. That's what investors and markets are going to be wondering: What is this new Fed chairman and updated (Fed policymaking body) looking for to decide the path of rates from here?"
Major US Banks Begin Q2 Earnings Reporting July 14
The Q2 earnings season is set to begin full throttle next week as major US banks start reporting quarterly results from July 14. PepsiCo quarterly results are expected on Thursday, while Delta Air Lines will follow suit on Friday.
Iran Tensions Tighten Strait of Hormuz Shipping
Millions mourned the death of Iran's former leader Ali Khamenei at his funeral. The flow of ships through the Strait of Hormuz is reportedly tightening again as Tehran seeks to get a stronger hold on the critical waterways. At least eight ships turned around on Saturday after IRGC issued warnings, according to a report from The Guardian, with flow thinning even further on Sunday.
Crude oil prices retreated late Sunday as markets closely watched developments between the US and Iran. At the time of writing, Brent crude futures expiring in August were down about 0.42%, trading at around $71.82 per barrel. WTI crude futures expiring in August fell by about 0.28% to $68.50 per barrel.
SLS, ONDS, HOOD Lead Retail Stock Focus
SELLAS Life Sciences Group Inc. (SLS) jumped onto the retail radar as a key acute myeloid leukemia (AML) trial nears its final readout. Shares of the company closed up nearly 13% on Thursday but were edging lower in the overnight session on Sunday.
Ondas Inc. (ONDS) is garnering attention amid a high short interest, which has surged to nearly a third of the company's total float at 31.70%, according to Koyfin data.
Robinhood Markets Inc. (HOOD) jumped nearly 3% higher on Thursday and continued to climb in the overnight session on Sunday amid a flurry of positive catalysts for the company, including announcements from its 'World Is Flat' event and a price target update from Mizuho.
Marathon Digital Holdings Inc. (MARA) and Hut 8 Corp. (HUT) are garnering increased attention amid the shift from Bitcoin mining to AI infrastructure companies.
Asian Markets Open Higher as Oil Prices Retreat
Asian markets largely traded higher at the open on Monday. South Korea's KOSPI, China's SSE Composite index, and Japan's Nikkei 225 all edged higher at the time of writing. However, Australian stocks were trading lower at the open. Yields on the 10-year Treasury were at 4.479% at the time of writing, while spot gold prices rose to around $4,184.52 an ounce.
FAQ
What did US stock futures do after the July 4 break?
US stock futures climbed late Sunday after the Independence Day break, with Nasdaq 100 futures jumping 1.33%, S&P 500 futures rising 0.53%, and Dow futures up 0.15% at 8:11 PM EDT.
When are the Federal Reserve's June meeting minutes being released?
The Federal Reserve's June meeting minutes are set to be released on Wednesday. This was Kevin Warsh's first meeting as Fed Chair, where the central bank held key interest rates steady at 3.5% to 3.75%.
When does the Q2 earnings season begin for major US banks?
The Q2 earnings season is set to begin full throttle next week as major US banks start reporting quarterly results from July 14. PepsiCo quarterly results are expected on Thursday, while Delta Air Lines will follow on Friday.
