US stock futures climbed early Thursday, June 26, signaling a potentially positive open for equity markets. Investor attention remained squarely on the S&P 500 index as it continued its ascent, nearing a significant all-time record high. Adding another key dynamic, the U.S. dollar extended its recent weakness, hitting its lowest level in three years.
US Futures Point Higher
At 4:58 a.m. ET, futures tied to the major Wall Street benchmarks were showing gains. Futures on the Nasdaq 100 (^NDX) rose 0.43%, Dow Jones Industrial Average (^DJI) futures were up 0.22%, and S&P 500 (^GSPC) futures advanced 0.3%.
This morning’s positive tilt follows a mixed trading session on Wednesday, where the S&P 500 finished essentially flat (+0.01%), the Nasdaq 100 gained a modest 0.21%, while the Dow Jones dipped about 0.3%. Despite the varied close, all three indexes remain on track for a potentially winning week. The S&P 500 is now positioned less than 1% below its intraday peak recorded in February, keeping the prospect of a new record firmly in view for market participants. Recent strength in notable tech stocks like Nvidia and Micron Technology, which saw significant surges in previous sessions, has contributed to the upward momentum leading into today.
Dollar Slumps to Multi-Year Low
Adding a notable shift to the financial landscape, the U.S. dollar index fell 0.3% in Asian trading on Thursday, reaching its weakest point since early 2022. This decline is being linked to rising political uncertainty. Specifically, a report suggesting President Donald Trump may announce his choice for the next Federal Reserve chair sooner than anticipated has added to investor apprehension regarding the future trajectory of U.S. monetary policy and, consequently, the dollar’s value.
Bond Market Shows Strain
In contrast to equity futures, the U.S. bond market appears to be under pressure. Investors have been actively pulling funds out of long-term U.S. bond funds at the fastest rate since early 2020, with nearly $11 billion withdrawn this quarter. Reflecting this dynamic, the yield on the benchmark U.S. 10-year Treasury note was trading lower early Thursday, hovering near 4.28%.
Key Economic Data & Earnings Ahead
Attention today turns to critical economic releases. The latest weekly jobless claims data, due at 8:30 a.m. ET, will offer fresh insights into the state of the U.S. labor market. Looking ahead to Friday, the highly anticipated May Personal Consumption Expenditures (PCE) price index will be released. This index is the Federal Reserve’s preferred measure of inflation, and Fed Chair Jerome Powell recently indicated expectations for headline PCE inflation to rise to 2.3% and core inflation to 2.6%, slightly above April’s readings. These data points are crucial for investors trying to gauge the Federal Reserve’s potential next steps regarding interest rates amidst ongoing economic signals, including recent data showing a significant drop in new-home sales in May attributed to factors like high mortgage rates and affordability constraints.
On the corporate earnings front, results are expected today from Walgreens Boots Alliance (WBA) and Nike (NKE), which could impact sentiment in their respective sectors.
Commodities and Global Markets
Elsewhere in the markets, WTI crude oil futures were trending higher, trading near $64.99 per barrel. The Gold Spot U.S. Dollar Price also climbed, nearing $3,346 per ounce early Thursday.
Looking at international markets, European stocks opened modestly higher, with investors monitoring geopolitical developments like the Israel-Iran ceasefire, upcoming U.S. tariff deadlines, and recent commentary from Fed officials. Asia-Pacific markets traded mixed; while Japan’s main indexes saw gains, markets in Hong Kong and mainland China closed lower as regional investors assessed the impacts of the ongoing ceasefire between Israel and Iran. Geopolitical factors, including the reported truce between Israel and Iran and planned U.S. talks next week, appear to have contributed positively to overall market sentiment today by easing some prior concerns.
