U.S. stock futures were rising on Monday, as the Dow Jones, S&P 500 and Nasdaq 100 indices advanced, following Friday’s mixed close.
U.S. factory demand showed resilience in June as new orders for manufactured durable goods rebounded 0.3% to $334.8 billion, recovering from May’s revised 4.0% drop. The modest uptick was primarily driven by strength in tech manufacturing, with computers and electronic products surging 3.1% to lead gains.
Over the weekend, the U.S. suspended its 13-night airstrike campaign against Iran to allow for diplomacy and assess munitions stocks. In response, a senior Iranian official confirmed Tehran would also halt retaliatory strikes as long as the U.S. pause continues.
Investors are preparing for a critical week as four ‘Magnificent 7’ heavyweights—Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), and Apple Inc. (NASDAQ:AAPL)—report quarterly results, alongside the Federal Open Market Committee’s (FOMC) interest rate decision on Wednesday presided over by Chair Kevin Warsh.
Meanwhile, the 10-year Treasury bond yielded 4.64%, and the two-year bond was at 4.30%. The CME Group’s FedWatch tool’s projections show markets pricing a 68.5% likelihood of the Federal Reserve leaving the current interest rates unchanged during July’s meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.95% |
| S&P 500 | 0.96% |
| Nasdaq 100 | 1.63% |
| Russell 2000 | 1.30% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Monday. The SPY was up 0.82% at $745.00, while the QQQ advanced by 1.30% to $693.14.
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Stocks In Focus
Microchip Technology
- Microchip Technology Inc. (NASDAQ: MCHP ) was 2.24% higher in premarket on Monday after it reported that it has signed an agreement to acquire Hailo.
Advanced Micro Devices
- Advanced Micro Devices Inc. (NASDAQ: AMD ) was 3.03% higher, continuing its positive momentum from last week following its Analyst Day, where it announced large-scale Anthropic and OpenAI partnerships, new data-center products, and said that it expects the AI accelerator market to reach $1.4 trillion by 2030
Safety Insurance Group
- Safety Insurance Group Inc. (NASDAQ: SAFT ) was 1.14% lower after the company announced Mapfre will acquire it on Friday.
Celestica
- Celestica Inc. (NYSE: CLS ) was 2.53% higher as analysts expect it to post quarterly earnings of $2.30 per share on revenue of $4.39 billion.
Nucor
- Nucor Corp. (NYSE: NUE ) was up 1.37% as analysts expect it to post quarterly earnings of $4.38 per share on revenue of $10.14 billion.
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Cues From Last Session
Consumer staples, real estate, and materials stocks led Friday’s gains, while information technology shares fell, leaving U.S. markets mixed as the Dow rose over 200 points and chips dragged the Nasdaq down.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.46% | 51,947.25 |
| S&P 500 | 0.050% | 7,411.98 |
| Nasdaq Composite | -0.64% | 24,975.82 |
| Russell 2000 | -0.35% | 2,930.00 |
Insights From Analysts
Mohamed A. El-Erian highlights a complex, “two-speed economy” in the U.S. where the service sector shows resilience while manufacturing faces persistent headwinds.
He emphasizes that the current landscape is defined by “crosscurrents currently affecting the global economy and markets, as well as the still-elusive search for endpoints on key issues.”
Geopolitical frictions and supply chain disruptions are reigniting inflationary pressures, creating a “tug-of-war” between investors who want to brush aside risks and those remaining cautious. Furthermore, heavy capital expenditure in the technology sector is driving up debt issuance, which pushes long-term yields higher.
Regarding Federal Reserve policy, El-Erian expects the central bank to keep interest rates steady to avoid “premature tightening, which could over-adjust the economy,” while staying cautious of second-round inflation risks.
He notes that determining a clear policy trajectory remains difficult, as “defining the ultimate ‘landing zone’ for policy will seem like a moving target, requiring open-mindedness and optionality.”
Meanwhile, U.S. equity markets face ongoing pressure, particularly in tech, as investors scrutinize heavy AI capital expenditures for clear signs of ultimate profitability.
Upcoming Economic Data
Here’s what investors will be keeping an eye on this week.
- Orders for long-lasting goods rose $1.1 billion (+0.3%) in June to $334.8 billion following May’s sharp 4.0% decline. Excluding the volatile transportation segment, new orders expanded 0.6%. Excluding defense, orders edged up 0.3%.
- On Tuesday, June’s advance economic indicators report, wholesale inventories, and retail inventories data will be released by 8:30 a.m. ET.
- May’s S&P CoreLogic Case-Shiller home price index data will be out by 9:00 a.m., and July’s Conference Board consumer confidence data will be released by 10:00 a.m. ET.
- On Wednesday, the U.S. interest rate decision will be released by 2:00 p.m. ET.
- On Thursday, second quarter advance estimate GDP, weekly jobless claims for the week ending July 25, June’s personal income, consumer spending, headline PCE price index, and core PCE price index data will all be released by 8:30 a.m. ET.
- On Friday, second quarter employment cost index data will be released by 8:30 a.m. ET.
- July’s Chicago PMI will be released by 9:45 a.m., and July’s final University of Michigan consumer sentiment data will be out by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading lower in the early New York session by 6.73% to hover around $83.30 per barrel.
Gold Spot US Dollar rose 0.98% to hover around $4,092.76 per ounce. The U.S. Dollar Index spot was 0.21% lower at the 101.2590 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.17% higher at $65,143.39 per coin over the last 24 hours.
Asian markets closed higher on Monday, as India’s Nifty 50, Australia’s ASX 200, South Korea’s Kospi, Hong Kong’s Hang Seng, China’s CSI 300, and Japan’s Nikkei 225 indices rose. European markets were also higher in early trade.
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