U.S. futures traded higher on Monday morning as investors looked ahead to enter the second quarter of 2024. Notably, futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.66%, 0.4%, and 0.33%, respectively, at 4:30 a.m. EST, April 1.
These positive developments may be attributed to investors’ response to the PCE price index report released last Friday, coinciding with a market closure for a holiday. The report revealed that inflation rose by 0.3% month-on-month in February, slightly lower than the 0.4% rise in January, and was also in line with the consensus forecast.
Regarding the first quarter performance, all three major indices – NDX, SPX, and DJIA –witnessed an upside on renewed hopes about three potential interest rate cuts in 2024 and the artificial intelligence-fueled rally within the technology sector. The S&P 500 Index rallied 10.2%, marking its best quarterly win since 2019. Meanwhile, the Nasdaq 100 and the Dow Jones indices registered gains of 9.1% and 5.6%, respectively, during the period.
Turning to this week’s economic reports, the Manufacturing Purchasing Managers’ Index (PMI) report for March is due for release today. Additionally, investors await the release of the Services PMI data on Wednesday. Furthermore, last month’s Nonfarm Payrolls and Unemployment Rate will be released on Friday.
On the earnings front, PVH (PVH), Dave & Buster’s (PLAY), Acuity Brands (AYI), Levi Strauss (LEVI), and Lamb Weston (LW) will announce results this week.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.2%. At the same time, WTI crude oil futures trended higher, hovering near $83.48 per barrel as of the last check, hitting the highest level over the past five months, as traders are looking forward to OPEC+’s joint ministerial meeting later this week.
Elsewhere, European indices opened higher today after the release of a key U.S. inflation report, which did not impact hopes for interest rate cuts.
Asia-Pacific Markets Ended Mixed on Monday
Asia-Pacific indices ended today’s session on a mixed note as investors evaluated several economic reports from across the region. In China, the manufacturing activity report for March revealed the fastest growth since February 2023 due to strong demand. However, Japan’s first-quarter Tankan survey indicated a decrease in business confidence amongst major manufacturing companies.
Hong Kong’s Hang Seng index closed 0.91% higher. Similarly, China’s Shanghai Composite and Shenzhen Component indices rose by 1.19% and 2.62%, respectively. Nevertheless, Japan’s Nikkei and Topix indices fell 1.4% and 1.71%, respectively.
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