Futures Extend Rally on Earnings Beats, Fed Cut Hopes – Europe Market Wrap
US equity futures extended a rebound stoked by robust corporate earnings and bets on Federal Reserve interest-rate cuts.
Futures on die S&P 500 climbed 0.3% after the underlying gauge jumped the most since May as dip buyers stepped in following last week’s steep selloff. Contracts on the Nasdaq 100 rose about 0.4%. Pfizer shares jumped more than 3% in premarket trading after the drugmaker beat analysts’ estimates for revenue and raised it earnings guidance.
Traders are increasingly pricing in Fed rate cuts after Friday’s weak jobs report, which dragged down stocks and sent bond prices sharply higher. Equities have rebounded from their April lows, driven by growing conviction that corporate America can absorb the impact from tariffs and that the Fed will step in to stave off a recession.
Meanwhile, Treasuries slipped across the curve, with the 10-year yield rising two basis points to 4.21% as the biggest week of Treasury note and bond sales since May weighs on prices. A gauge of the dollar rose.
