(Bloomberg) — US stock-index futures slipped after the S&P 500’s record streak, with investors awaiting the Federal Reserve’s favored price gauge for signals on the path of interest rates.
Contracts for US and European shares edged 0.1% lower ahead of Friday’s report. Asian shares were mixed while China’s liquidity-fueled rally extended ahead of results from the nation’s biggest banks and companies such as Alibaba Group Holding Ltd. and BYD Co. A gauge of the dollar edged up, while yields on the benchmark 10-year Treasuries rose one basis point to 4.21%.
Oil fell 0.6% after gaining in the previous session on waning prospect of a peace agreement between Russia and Ukraine.
The S&P 500 closed at a record high Thursday after data showed the US economy expanded faster than initially estimated, highlighting the resilience of consumer spending. While that allayed recession jitters, it raised doubts about Friday’s inflation report, which is expected to show core personal consumption expenditures prices rising 2.9% in July, the fastest pace in five months.
“In-line or lower results will likely cement investors’ confidence in a September rate cut,” said Bret Kenwell at eToro. “While a higher-than-expected print may not take a rate cut off the table next month, it could sour Wall Street’s mood as inflation concerns grow.”
Chinese markets were in focus during Asian hours with the CSI 300 gaining as much as 1.2% after Goldman Sachs strategists raised their 12-month target for the index to 4,900 from 4,500. While Goldman Sachs boosted China stock targets, Morgan Stanley analysts flagged emerging signs of the market overheating.
It’s the busiest earnings day in China this week, with 441 locally listed companies reporting.
The country’s stock market is heading for a record turnover this month, underscoring the intensity of a bull run that’s bringing in more investors by the day. Market excitement in China is running high even as banks and regulators hint they might try to cool things down, with US tariffs and a deep-rooted property crisis straining the economy.
Meanwhile, inflation-adjusted gross domestic product, which measures the value of goods and services produced in the US, increased at a 3.3% annualized pace in the second quarter. That compared with an initially reported 3% increase.
While the latest GDP report provides a bit more clarity, the focus remains on the delicate balance between elevated inflation and a softening labor market, according to Jim Baird at Plante Moran Financial Advisors.
In commodities, oil gave up some of its gains in the prior session amid waning hopes for peace in Ukraine, which reduced the likelihood of more of Moscow’s supplies reaching broader markets in the near term.
Oil is headed for a monthly loss, as investors weighed concerns about a looming glut along with geopolitical tensions, including US-led efforts to end the war in Ukraine.
A meeting between Ukrainian President Volodymyr Zelenskiy and Russia’s Vladimir Putin is unlikely to materialize, according to German Chancellor Friedrich Merz, even though it was touted earlier by US President Donald Trump. The president will make a statement on Russia and Ukraine later, the White House said.
Corporate News:
Dell Technologies Inc. shares declined in extended trading after the company booked fewer sales of artificial intelligence servers and reported profit margins on the powerful machines that fell short of analysts’ estimates. Chinese battery maker Contemporary Amperex Technology Co.’s shares soared, with investors pinning the rally to a stronger outlook for sales following an earnings report from a supplier. Gap Inc. expects its margins will shrink this year, a sign tariffs are slowing recent turnaround momentum. Super Micro Computer Inc. cautioned that weaknesses in its controls related to financial disclosures could, if not fixed, hurt the company’s ability to report results “in a timely and accurate manner.” Dentsu shares climbed as much as 11%, the most since Aug. 6 last year, after the Japanese advertising firm said it’s continuing to review its overseas operations, fueling hopes of better profitability. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.1% as of 2:11 p.m. Tokyo time Japan’s Topix fell 0.4% Australia’s S&P/ASX 200 fell 0.1% Hong Kong’s Hang Seng rose 0.7% The Shanghai Composite rose 0.4% Euro Stoxx 50 futures fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1663 The Japanese yen was little changed at 146.95 per dollar The offshore yuan was little changed at 7.1243 per dollar Cryptocurrencies
Bitcoin fell 0.4% to $111,441.59 Ether rose 0.4% to $4,475.29 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.21% Japan’s 10-year yield was unchanged at 1.615% Australia’s 10-year yield advanced one basis point to 4.30% Commodities
West Texas Intermediate crude fell 0.6% to $64.19 a barrel Spot gold fell 0.2% to $3,408.62 an ounce This story was produced with the assistance of Bloomberg Automation.
-With assistance from Zhu Lin, Charlotte Yang and Abhishek Vishnoi.
