Stock index futures traded in the green on Friday, a day after the first U.S. presidential debate of the year took place, and as investors keenly wait for key inflation data expected to land later in the day.
S&P 500 futures (SPX) +0.4%, Nasdaq 100 futures (US100:IND) +0.4% and Dow futures (INDU) +0.1%.
The 10-year Treasury yield (US10Y) rose 3 basis points to 4.31%. The 2-year yield (US2Y) rose 2 basis points to 4.74%. See how other yields trade across the entire yield curve here.
Wall Street’s major market averages concluded in a more muted fashion on Thursday as traders parsed through a slew of economic reports.
Politics was in the spotlight as incumbent President Joe Biden and former leader Donald Trump sparred over key topics at the first televised presidential debate late on Thursday.
“Polls immediately after the debate declared Trump the winner. While incumbents often ‘lose’ debates, Biden reportedly lost by a large margin. This invites increased investor scrutiny of Trump’s policies, especially around trade,” UBS’ Paul Donovan said.
The main event for today is the May personal-consumption expenditures (PCE) – the Federal Reserve’s preferred inflation gauge.
The PCE index is expected to see no change month-over-month, and rise 2.6% year-over-year. Economists forecast core PCE to tick up 0.1% M/M, and increase 2.6% on a year-over-year basis.
“May core PCE likely rose by the least since November,” Pantheon Macroeconomics said.
On the economic calendar, the June Chicago PMI is also scheduled to be released during market hours, and is forecasted to rise to 39.7.
“While price data is the focus, consumer spending figures follow negative revisions within first quarter GDP. The monthly change in the consumer spending deflator should be benign, and the main concern about inflation amongst economists is why Fed Chair Powell has seemingly not noticed rising real interest rates,” Donovan added.
The June consumer sentiment will also come during market hours, and is expected to fall to 65.6.