U.S. stock futures are showing signs of recovery on Monday after a stumble at the close of May. Investors are turning their attention to key economic indicators, particularly job data, and monitoring the resilience of the technology sector following Nvidia’s unveiling of its new chip plans.
As of early trading, Dow Jones Industrial Average futures are down 18 points, or 0.1%, while S&P 500 futures are up 0.1% and Nasdaq 100 futures are rising by 0.3%.
The focal point of the week lies in Friday’s release of the non-farm payrolls report for May. Last month’s report revealed that hiring fell short of expectations, with 175,000 jobs added. Preceding this, on Tuesday, the Job Openings and Labor Turnover Survey (JOLTS) will be published.
In a research note on Monday, ING analyst Chris Turner highlighted the significance of these reports, noting, “Lower job openings will reflect a better balance between demand and supply and will have implications for how the Fed thinks both about labor demand and wage price pressures. The main event this week will, however, be Friday’s US job report for May. Our team is looking for a softer figure at +150k [150,000 jobs added], which if seen should prove a modest negative for the dollar.”
Meanwhile, the yield on the benchmark 10-year Treasury note stood at 4.497% early on Monday, showing a slight decrease from the previous week.
Attention in the stock market is also focused on chip maker Nvidia following its announcement of plans to introduce a new family of AI chips annually. CEO Jensen Huang revealed these plans during a keynote address ahead of the Computex trade show in Taiwan on Sunday. The company aims to launch the Blackwell Ultra chip in 2025 and the next-generation Rubin chip platform in 2026.
In other news, OPEC and its allies have reached an agreement to extend all production curbs into the next year. The group has committed to reductions of 3.66 million barrels a day.
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