US Futures, Tesla Climb On Easing Trump-Musk Rift: Markets Wrap
Equity-index futures for Japanese and Australian shares declined, weighed down by lackluster sentiment in US trading that pushed the S&P 500 down by 0.5% and the Nasdaq 100 lower by 0.8%.
US stock futures are bouncing ahead of the release of US jobs data, on signs that the extraordinary spat between President Donald Trump and Elon Musk may cool.
S&P 500 contracts rose 0.4%. Tesla Inc. rebounded 4.3% in early trading after plunging 14% on Thursday, when Trump proposed cutting off the billionaire’s government contracts. Musk, who triggered the public feud by criticizing Trump’s signature tax bill, later signaled that he’s keen to dial down the hostility.
“Futures are edging higher, perhaps as Musk has started to suggest on X that he would be open to a cooling-off period in his war of words with the President,” said Jim Reid, global head of macro research and thematic strategy at Deutsche Bank AG.
Other asset classes posted smaller moves as traders awaited the monthly nonfarm payrolls report for a fresh indicator of how the Trump administration’s trade war is affecting the economy. The dollar rose 0.2% as Treasury yields eased, with the 10-year rate declining two basis points to 4.37%.
Data released earlier this week signaled a softening labor market, which reinforced expectations that the Federal Reserve will cut interest rates at least twice this year. Economists see growth in payrolls decelerating to 125,000 after beating expectations for a second month in April.
“There’s a lot of white noise in the system but the one factor that we have to focus on is the labor market, that’s really what matters,” Gregory Peters, co-chief investment officer at PGIM Fixed Income, told Bloomberg TV. “There’s a bias, if the data comes in softer than expected then I think that’s going to have an outsized reaction versus the opposite.”
Corporate Highlights:
Lululemon Athletica Inc. shares plunged as much as 22% in premarket trading after the upscale athletic clothing company cut its earnings per share forecast.
Hennes & Mauritz AB, the fast-fashion retailer that’s been listed on the Swedish stock market since 1974, is steadily moving back toward private ownership.
Siemens Energy AG is on course to pay a dividend for the first time in almost four years after replacing an €11 billion ($12.6 billion) rescue package backed by the German government.
Autodoc SE is planning an initial public offering in Frankfurt as subsiding market volatility gives more European companies the confidence to proceed with listings.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 was little changed as of 10:08 a.m. London time
S&P 500 futures rose 0.4%
Nasdaq 100 futures rose 0.3%
Futures on the Dow Jones Industrial Average rose 0.4%
The MSCI Asia Pacific Index was little changed
The MSCI Emerging Markets Index was little changed
Currencies
The Bloomberg Dollar Spot Index rose 0.2%
The euro fell 0.3% to $1.1413
The Japanese yen fell 0.4% to 144.10 per dollar
The offshore yuan fell 0.1% to 7.1860 per dollar
The British pound fell 0.3% to $1.3533
Cryptocurrencies
Bitcoin rose 3.1% to $103,639.59
Ether rose 2.7% to $2,463.61
Bonds
The yield on 10-year Treasuries declined two basis points to 4.37%
Germany’s 10-year yield declined four basis points to 2.54%
Britain’s 10-year yield declined two basis points to 4.59%
Commodities
Brent crude fell 0.3% to $65.14 a barrel
Spot gold rose 0.2% to $3,360.92 an ounce
