Market Uplift Following Biden’s Withdrawal
Stock index futures are on the rise today in the wake of President Joe Biden’s surprising exit from the presidential race.
S&P 500 futures (SPX) +0.6%, Nasdaq 100 futures (US100:IND) +0.9%, and Dow futures (INDU) +0.2%.
The 10-year Treasury yields (US10Y) have seen a 1 basis point decline to 4.23%, while the 2-year yield (US2Y) has increased by 1 basis point to 4.53%.
Market Volatility Amid Political Shifts
The past week witnessed significant market turbulence, triggered by a rotation out of technology stocks following the consumer inflation report.
As political dynamics took center stage, Joe Biden’s withdrawal from the race on Sunday and endorsement of Vice President Kamala Harris for the Democratic nomination added to the intrigue.
Market observers are closely monitoring developments, with differing opinions on how the market might react to the changing political landscape.
Chinese Rate Cuts Spur Market Interest
Adding to the market narrative, traders are buzzing about the unexpected rate cuts announced by the People’s Bank of China.
The 7-day reverse repo rate was reduced to 1.7% from 1.8%, with cuts also applied to the 1-year loan prime rate and the 5-year rate.
Economic Outlook: A Glimpse into Monday’s Agenda
Today’s economic calendar offers sparse data, with the main highlight being the June Chicago Fed national activity report.