Exchange-Traded Funds and Equity Futures Surge Ahead of Monday Trading on Prospects of Interest Rate Reduction

Exchange-Traded Funds and Equity Futures Surge Ahead of Monday Trading on Prospects of Interest Rate Reduction

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.2% and the actively traded Invesco QQQ Trust (QQQ) was 0.3% higher in Monday’s premarket activity, as hopes for an interest rate cut this quarter rose after the recent inflation report showed moderating prices.

US stock futures were also higher, with S&P 500 Index futures up 0.3%, Dow Jones Industrial Average futures advancing 0.2%, and Nasdaq futures gaining 0.4% before the start of regular trading.

The S&P Global PMI manufacturing final for March will be released at 9:45 am ET, followed by the March ISM manufacturing index report and the February construction spending bulletin at 10 am ET.

Federal Reserve Governor Lisa Cook speaks at 6:50 pm ET.

In premarket action, bitcoin was down by 2.2% and the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1.7% lower.

Power Play:

Health Care

The Health Care Select Sector SPDR Fund (XLV) was flat. The Vanguard Health Care Index Fund (VHT) was flat while the iShares US Healthcare ETF (IYH) slipped 0.5%. The iShares Biotechnology ETF (IBB) edged 0.8% lower.

Fractyl Health GUTS was down more than 20% premarket after the company reported a wider Q4 net loss from a year earlier.

Winners and Losers:

Financial

Financial Select Sector SPDR Fund (XLF) gained 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.9%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.6%.

CleanSpark CLSK was down nearly 10% pre-bell Monday even after the bitcoin mining company said it mined 806 bitcoins in March, up 24% from February with total bitcoin holdings of 5,021.

Consumer

The Consumer Staples Select Sector SPDR Fund (XLP) was up 0.2%, while the Vanguard Consumer Staples Fund (VDC) was inactive. The iShares US Consumer Staples ETF (IYK) was inactive, and the Consumer Discretionary Select Sector SPDR Fund (XLY) gained 0.1%. The VanEck Retail ETF (RTH) was inactive, while the SPDR S&P Retail ETF (XRT) advanced 0.2%.

Li Auto 2015 traded up 3.5% pre-bell after the company said it delivered 28,984 vehicles in March, a 39.2% increase from a year earlier.

Technology

Technology Select Sector SPDR Fund (XLK) advanced 0.5%, and the iShares US Technology ETF (IYW) was 0.2% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 0.2%. Among semiconductor ETFs, SPDR S&P Semiconductor ETF (XSD) retreated 0.3%, while the iShares Semiconductor ETF (SOXX) rose by 0.6%.

Ondas Holdings ONDS was up more than 4% in recent Monday premarket activity after the company reported higher 2023 revenue and a narrowed net loss from the prior year.

Industrial

Industrial Select Sector SPDR Fund (XLI) and the Vanguard Industrials Index Fund (VIS) were both up 0.45%, while the iShares US Industrials ETF (IYJ) was inactive.

Elbit Systems ESLT gained 1.1% before the opening bell after the Israeli defense contractor said it aims to cap the annual bonus of its chief executive officer at $2.5 million, instead of the $3 million it previously proposed.

Energy

The iShares US Energy ETF (IYE) advanced 0.2%, while the Energy Select Sector SPDR Fund (XLE) was up by 0.1%.

Vital Energy VTLE was up 0.1% before Monday’s opening bell after the company said it plans to offer $100 million of 7.875% senior notes due 2032 in a private placement.

Commodities

Front-month US West Texas Intermediate crude oil lost 0.2% at $83 per barrel on the New York Mercantile Exchange. Natural gas fell 0.5% at $1.76 per 1 million British Thermal Units. United States Oil Fund (USO) advanced 0.1%, while the United States Natural Gas Fund (UNG) edged 0.1% higher.

Gold futures for June were nearly 1.4% higher to $2,268.90 an ounce on the Comex, and silver futures were up 0.9% to $25.14 an ounce. SPDR Gold Shares (GLD) gained 1.1%, and iShares Silver Trust (SLV) advanced 1.2%.

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