Investing.com – US stock futures were slightly lower on Friday as investors braced for the release of the US Federal Reserve’s preferred inflation gauge. The release could influence how Fed policymakers, some of whom have already signaled concerns about rising rates, approach a possible interest rate cut later this year. Shares of Trump Media & Technology fell in after-hours trading after the historic verdict in the hush money trial of former US President Donald Trump in New York.
1. The future is low
US stock futures fell on Friday as investors awaited key US inflation data later in the session.
At 03:38 ET (0738 GMT), the Dow contract fell 21 points, or 0.05%, S&P 500 futures fell 12 points, or 0.2%, and S&P 500 futures fell 75 points, or 0.2%. %.
Major Wall Street indexes fell in the previous session, partly due to a change in data that the US economy grew less than previously expected in the first quarter, while a separate report showed weekly jobless claims rose more than expected.
Sentiment also worsened as shares of business software company Salesforce (NYSE: ) fell. The company’s shares lost nearly a fifth of their value after the California-based company’s current quarter forecasts fell below analysts’ forecasts due to a drop in customer spending.
2. Awaiting the PCE report
Traders will be closely watching the personal consumption goods (PCE) price index report on Friday.
The measure, a preferred indicator of inflation, could influence how the US central bank approaches a potential interest rate cut later this year. Fighting rising rates is one of the main goals of a series of rate hikes that have pushed borrowing costs to more than 20-year highs, but many Fed policymakers recently Some days have said they want to see more evidence that inflation is continuing to fall below target. level of 2% before starting to reduce the rate.
The core PCE index for April was estimated at 2.7% annualized and 0.3% monthly, the same pace recorded in March. Excluding volatile items such as food and fuel, the so-called core PCE is expected to be 2.8% annually and 0.3% monthly, also in line with previous values.
3. DJT shares fell after Trump was found guilty in a hush money trial.
Shares of Trump Media & Technology (:), the parent company of social media site Truth Social, which is majority-owned by former US President Donald Trump, fell in trading after a New York jury found Trump guilty- an in all counts murder-profile hidden money trial.
In an unprecedented unanimous verdict, the jury found that Trump broke the law by falsifying business records to hide a $130,000 payment to adult film actress Stormy Daniels. the 2016 election. This is the first time that a former US president has been found guilty of a crime.
Trump, the presumptive Republican presidential nominee in November’s critical election, now faces a sentencing hearing in July.
Trump Media’s stock price has followed his past legal battles, with the company’s shares falling more than 18% the day after the hush money case began. Shares of the company, which went public through a merger with a takeover company, have fallen about 10% since its inception in March.
4. China’s manufacturing activity contracted unexpectedly
China’s business activity index (PMI) unexpectedly contracted in May, data showed on Friday, which could put pressure on Chinese officials to introduce more support measures.
The manufacturing PMI was 49.5 in May, according to the National Bureau of Statistics. The reading was weaker than expected at 50.5 and contrasted with growth over the past two months. A reading below 50 means a contraction.
China’s manufacturing industry is a key driver of the world’s second-largest economy, which itself is suffering from sluggish consumer demand and a sluggish domestic housing market.
The non-manufacturing PMI came in at 51.1 in May, up from 51.2 in April and below expectations of 51.5.
5. The oil is gone every month
Crude oil prices hovered around flat on Friday and pointed to monthly losses, partly driven by concerns that tighter monetary policy will lead to weaker demand this year.
By 3:38 am ET, futures were trading 0.1% lower at $77.82 a barrel, while the contract was little changed at $81.88 a barrel. Both benchmarks are on track to decline by about 2% in May.
US oil inventories fell more than expected last week, but gasoline inventories rose by 2 million barrels, beating expectations, according to data released Thursday. That has raised concerns that demand among the biggest consumers of gasoline could slow ahead of the travel-heavy summer season.
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