Stock index futures remain muted on Monday morning as investors wait for any progress on debt ceiling talks.
Early on and the Dow futures (INDU) gained 0.1%, while the S&P futures (SPX) and Nasdaq 100 futures (NDX:IND) were near flat.
The 10-year Treasury yield (US10Y) fell 2 basis points to 3.68%. The 2-year yield (US2Y) fell 2 basis points to 4.26%.
“US debt ceiling negotiations are due to resume today and the President will talk again with House Speaker McCarthy on Monday,” SocGen’s Kit Juckes wrote. “Are they trying to get a deal done, or trying to put the blame for failure on the other party? Who knows (at least from this distance), but I suppose talking again is a step forward from where we were on Friday, when the dollar was being sold and gloom was descending.”
“Rate differentials have stabilized, after moving in the dollar’s favor as the market took out pricing of Fed rate cuts,” Juckes said.
The economic calendar is fairly empty but St. Louis Fed President Jim Bullard speaks before the opening bell. Richmond Fed Tom Barkin and San Francisco Fed President Mary Daly are up after the start of trading.
“No fewer than 11 global central bankers are jostling for attention from the world’s media today,” UBS’ Paul Donovan said. “The message from all this central bank babble is likely to be confusion. We are close to monetary policy turning points, in the middle of structural upheaval, with data which is less reliable. In such circumstances, there is a risk that gut instinct and pre-conceived ideas play as much of a role as analysis when it comes to policy comments.”
“Profit-led inflation may get a mention. Profit-led inflation occurs at the end of supply chains, so it is essentially about relative prices (consumer prices in specific sectors rise relative to other prices),” he said. “There is anecdotal evidence of some margin squeeze emerging.”
Among active stocks Micron slumped after China banned the company’s products from its “critical infrastructure supply chain” following a nearly two-month review.
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