US Futures Edge Higher as Nvidia Extends Rebound: Markets Wrap

　　(Bloomberg) -- US equity futures edged higher, suggesting Wall Street‘s tech-driven rally — fueled by Nvidia Corp.’s rebound from a $430 billion rout — still has momentum.

　　Nvidia climbed more than 2% in US premarket trading, adding to Tuesdays 7% gain. Shares of the giant chip maker have soared this year amid unrelenting demand for its chips that dominate the market for artificial intelligence computing. Rival Micron Technology Inc. climbed more than 3% ahead of its third-quarter results later Wednesday.

　　“Nvidias volatility has weighed on market sentiment, but we think the structural investment case for artificial intelligence remains intact,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “We also hold a constructive outlook for broader equities amid solid fundamentals.”

　　FedEx Corp., a bellwether for economic growth, surged more than 13% after an upbeat profit forecast amid optimism the Federal Reserve will cut interest rates as the economy shows signs of cooling.

　　Fed officials recently forecast just 25 basis points of reductions by the end of this year and a total of 125 basis points by end-2025, while market participants are pricing in about 75 basis points by the first quarter of 2025.

　　But some are starting to hedge against deeper and more rapid easing: positioning in the rate options market shows an increase in bets that stand to benefit if the Fed reduces its key rate to as low as 2.25% over the next nine months — a whopping 3 percentage points of cuts.

　　The 10-year Treasury yield ticked higher and a gauge of the dollar rose for a second day. The US will sell $70 billion of five-year notes later Wednesday after a solid auction of two-year Treasuries yesterday.

　　Technology shares led a modest gain in the Stoxx Europe 600 index. Among individual movers in Europe, Deutsche Post AG added more than 3% after FedExs positive forecast. Danske Bank A/S rose more than 2% after lifting its full-year outlook.

　　In the absence of major data from the euro zone on Wednesday, traders are taking their cues from policy signals. Investor expectations for the European Central Bank to loosen monetary policy twice more this year are fair, according to Governing Council member Olli Rehn, who added that officials shouldnt overly dampen economic activity.

　　Story continues

　　Yen Watch

　　The yen breached 160 per dollar, a level that triggered a sharp reversal on April 29 due to suspected intervention, raising speculation Japanese authorities may take steps to support the currency again.

　　Japanese and Hong Kong equity gauges rose, while those in Australia declined. Australias dollar and bond yields climbed after the inflation numbers suggested price pressures remain stubbornly strong and bolstered the case for the central bank to resume raising interest rates.

　　Chinas 10-year bond yield fell to a more than two-decade low as investors flocked to fixed-income securities amid concern about the slowing economy and expectations for further stimulus.

　　In commodities, oil rose ahead of a US government report on crude inventories and fuel demand following the release of mixed industry data. Iron ore climbed for a second day. Copper fell to the lowest in more than two months with prices facing sustained pressure from unusually weak Chinese demand. Gold was little changed.

　　Key events this week:

• US new home sales, Wednesday
• China industrial profits, Thursday
• Eurozone economic confidence, consumer confidence, Thursday
• US durable goods, initial jobless claims, GDP, Thursday
• Nike releases earnings, Thursday
• Japan Tokyo CPI, unemployment, industrial production, Friday
• US PCE inflation, spending and income, University of Michigan consumer sentiment, Friday
• Feds Thomas Barkin speaks, Friday

　　Some of the main moves in markets:

　　Stocks

• S&P 500 futures were little changed as of 6:16 a.m. New York time
• Nasdaq 100 futures rose 0.2%
• Futures on the Dow Jones Industrial Average were little changed
• The Stoxx Europe 600 was little changed
• The MSCI World Index was little changed

　　Currencies

• The Bloomberg Dollar Spot Index rose 0.2%
• The euro fell 0.3% to $1.0684
• The British pound fell 0.2% to $1.2660
• The Japanese yen fell 0.3% to 160.12 per dollar

　　Cryptocurrencies

• Bitcoin fell 1% to $61,304.22
• Ether fell 1.1% to $3,373.55

　　Bonds

• The yield on 10-year Treasuries advanced three basis points to 4.28%
• Germanys 10-year yield advanced two basis points to 2.43%
• Britains 10-year yield advanced two basis points to 4.10%

　　Commodities

• West Texas Intermediate crude rose 0.9% to $81.53 a barrel
• Spot gold fell 0.3% to $2,313.50 an ounce