Morning Juice – US Session Prep

Morning, Traders!
It is Monday the 5th of August, here are some things to look out for today.

Sentiment
Global stock markets tumbled, with losses cascading across tech stocks, Nasdaq 100 Index futures falling more than 4%, and Japanese equities falling by the most in more than ten years.

As concerns about a US economic slowdown grew, traders increased their bets that the Federal Reserve would intervene with an emergency interest rate cut, putting the odds at 30% for a quarter-point reduction.
The dollar weakened, and the 10-year Treasury yield dropped to its lowest level in a year. The CBOE Volatility Index, Wall Street’s fear gauge, surged to its highest level since 2020.

Docket
09:45 ET
US S&P Services PMI July Final
Median Forecast: 56 | Prior: 56 | Range: 56.1 / 55.8

10:00 ET
US ISM Services PMI for July
Median Forecast: 51.3 | Prior: 48.8 | Range: 53.3 / 49

11:30 ET
US sells $76 bln in 3-Month Bills
US sells $70 bln in 6-Month Bills

Speakers
17:00 ET
Fed’s Daly speaks in a moderated conversation about monetary policy and the economy at an event hosted in partnership with the Hawaii Executive Collaborative.
No text is expected but there is a Q&A.

Good luck!