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27/06/24
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U.S. Stock Futures Turn South
On June 27, United States stock index futures turned further to the downside, retracing following Micron Technology Inc’s disappointing guidance and ahead of the major economic data.
At 10:00 a.m. (GMT), Dow Jones Futures declined by 0.2 percent, S&P 500 Futures fell by 0.1 percent, and Nasdaq 100 Futures declined by 0.1 percent.
Wall Street indexes ended somewhat higher on June 26, influenced by Amazon surpassing the $2 trillion valuation mark following the announcement of a key foray into generative AI. Sentiment was negatively affected by Micron’s guidance and markets reacted on June 27.
Investors dumped chipmaking stocks after Micron Technology Inc released middling revenue guidance, and United States stock index futures turned downward on Thursday. Quarterly earnings from Micron Technology Inc were higher than anticipated but its revenue guidance for Q2 came in disappointing, as its valuation has sustained a more than hundred percent rise since 2023. The chipmaker’s stock declined by more than 5 percent in premarket trade.
This affected other chipmaking stocks, with Nvidia, Arm Holdings and Broadcom lower in premarket trade. Meanwhile, it seems investors are exhibiting a holding pattern ahead of key personal consumption expenditures price index data as well as the forthcoming presidential debate between Democrat and Republican candidates, Joe Biden and Donald Trump.
Economic data expected from the United States on June 27 includes weekly jobless claims, durable goods orders, pending home sales, and the first quarter GDP. However, markets are more focused on the Federal Reserve’s most preferred gauge for inflation (PCE price index) on Friday.
Walgreens Boots Alliance and Nike are expected to release their earnings reports. Levi Strauss stock declined by about 15 percent after reporting a miss in its fiscal Q2 revenue. GSK stock declined by more than 1 percent in premarket trade after a United States public health agency narrowed its usage recommendations for all respiratory syncytial virus (RSV) vaccines and altered recommendations based on age.
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