LIVE MARKETS-US stock futures pare losses slightly after latest data dump

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U.S. STOCK FUTURES PARE LOSSES SLIGHTLY AFTER LATEST DATA DUMP

The main U.S. equity index futures have pared losses slightly, while yields are lower, after the release of the latest data on U.S. producer prices and jobless claims.

E-mini S&P 500 futures EScv1 are now off around 0.3% vs a loss of around 0.5% just before the numbers came out. U.S. stock index futures were lower ahead of the data as signs of rising tensions in the Middle East weighed on risk sentiment and investors sought more clarity on Washington's recent trade deals with China.

May headline PPI month-over-month was cooler-than-expected. Year-over-year, it was in-line with the Reuters Poll. The month-over-month exFood/Energy print was below the estimate. The year-over-year read was also below the Reuters Poll number.

Separately, initial jobless claims were 248k vs a 240k estimate:

According to the CME's FedWatch Tool, the probability that the Fed sits on its hands and leaves its current target rate of 4.25%-4.50% unchanged at its June 17-18 FOMC meeting is at about 100%, which is essentially unchanged from just before the data was released.

Looking further out into 2025, the market is showing a bias for two rate cuts to occur, one in September and now one in October from December. Interest rate probabilities are pricing in a total of 54.7 basis points of cuts through year end vs 52.2 bps just before the data came out.

The U.S. 10-Year Treasury Yield US10YT=RR is now around 4.36%. It was around 4.38% just before the numbers came out. The yield ended Wednesday at 4.414%.

Nearly all S&P 500 index .SPX sector SPDR ETFs are quoted down in premarket trade. Industrials XLI.P, down more than 1%, are taking the biggest hit. Tech XLK.P is edging green.

The SPDR S&P regional banking ETF KRE.P is trading lower by around 0.8%.

Here is a premarket snapshot from around 08:52 a.m. EDT:

(Terence Gabriel)

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