Morning Juice – US Session Prep (1st June)

Sentiment
Stocks extended their advance, with US futures pointing to fresh record highs after a strong May rally led by chipmakers and broader AI enthusiasm. Microsoft rose in premarket trade as software shares gained after Jensen Huang played down fears that AI will disrupt the sector, while Nvidia also moved higher on news of its planned expansion into the PC market. Strong earnings and upbeat business guidance continue to support the rally, with the semiconductor index on track for its strongest quarter on record.

At the same time, oil prices rebounded, with Brent rising 3% to nearly $94 a barrel as uncertainty persisted around any lasting US-Iran agreement and the reopening of the Strait of Hormuz. Bonds also weakened, with the 10-year Treasury yield moving higher. Markets are still looking for confirmation that negotiations are progressing, especially after renewed regional escalation involving Hezbollah, Iran, and the US over the weekend. Even so, for now, the equity market is still leaning more heavily on AI momentum and earnings strength than on the geopolitical risk backdrop.

Docket
09:45 ET
US S&P Manufacturing PMI May Final
Forecast: 55.3 | Prior: 55.3 | Range: 55.4 / 55

10:00 ET
US ISM Manufacturing PMI for May
Forecast: 53.2 | Prior: 52.7 | Range: 53.5 / 52.5

Speakers
12:00 ET 
BoC Senior Deputy Governor Rogers will appear before the House of Commons Standing Committee on Public Accounts.
The Senior Deputy Governor will be accompanied by Coralia Bulhoes, Chief Financial Officer and Managing Director of Financial Services.
No remarks will be published on the Bank’s website.

Good luck!