Source: Fortune
Summary
US stock futures surged on Sunday, with the Dow Jones industrial average futures up 189 points, or 0.36%, and S&P 500 futures jumping 0.41%. The Kospi index in South Korea soared 18% on Friday, marking its biggest single-day jump on record. US oil prices tumbled 4.5% to $80.85 a barrel, and Brent crude dived 4.6% to $83.90. President Donald Trump’s decision to pull back from a massive attack on Iran contributed to the bullish mood. Meanwhile, labor market data is expected to be released in the coming week, which could impact the Federal Reserve’s willingness to rein in inflation.
Our Reading
The numbers tell one story.
The Kospi index’s record jump indicates investors are dipping their toes back in the water after a brutal selloff last month. Trump’s reversal on attacking Iran has eased tensions, but experts see signs that Iran is gaining the upper hand. The US 10-year Treasury yield fell 2.7 basis points to 4.718%. The Fed’s credibility is being tested ahead of labor market data releases.
The announcement sounds familiar.
Bank of America economists expect a hawkish outcome from the Federal Open Market Committee, given Fed Chairman Kevin Warsh’s dovish remarks last week. The bond yield curve will be a key indicator of the central bank’s perceived commitment to price stability.
Meanwhile, Trump’s decision to pull back from attacking Iran has eased tensions, but experts see signs that Iran is gaining the upper hand.
Author: Evan Null
