Stock Market Today: Stocks slide ahead of huge week on Wall Street

A key Fed decision, inflation updates, Apple's AI launch and more meme stock volatility are likely to grip markets this week.

Jun 10, 2024 - 18:30

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Stock Market Today: Stocks slide ahead of huge week on Wall Street

Check back for updates throughout the trading day

U.S. equity futures moved lower Monday, while the dollar powered higher and Treasury yields held steady, as investors braced for a crucial week for markets while navigating the fallout from European Parliament elections over the weekend.

Stocks ended the Friday session modestly lower but booked gains for the week, following a mixed series of labor-market data. The data culminated with a much-stronger-than-expected May employment report, which showed 272,000 new jobs added and a reacceleration in average hourly earnings.

The report stoked concerns that inflation pressures are likely to remain elevated into the summer months and pummeled bets that the Federal Reserve would cut interest rates in September.

The Fed's June policy decision is set for Wednesday afternoon, alongside fresh growth and inflation projections from central bank officials. Ahead of that move, traders are pegging the odds of a September reduction at less than 50% but have kept Treasury yields largely unchanged from Friday.

France's president, Emmanuel Macron, has called a snap election for June 30 following a surge in far-right support for European parliamentary candidates over the weekend.

Benchmark 10-year-note yields were last marked at 4.455% while 2-year notes were changing hands at 4.881% heading into the start of the New York trading session.

The U.S. dollar index, however, was marked 0.42% higher at 105.326, the highest since early May. That's thanks to a big decline in the euro triggered by weekend election results that showed a surge in support for far-right parties across the world's biggest economic bloc.

French President Emmanuel Macron, in fact, called a snap national election for June 30 based on the advance of his far-right rivals in the region's second-largest economy. The decision added to a host of headline political risks markets will need to navigate over the coming months.

On Wall Street this week, investors will also digest two key inflation readings, including the Commerce Department's Consumer Price Index report on Wednesday, as well as earnings from Oracle (ORCL) , Broadcom (AVGO) and Adobe (ADBE) .

Apple (AAPL) will host its highly anticipated World Wide Developers' Conference today in California, with investors looking for big updates on the tech giant's AI ambitions.

Nvidia (NVDA) will begin the first day of trading following Friday's 10-for-1 stock split.

Heading into the start of the trading day, futures contracts tied to the S&P 500, which is up 12.1% for the year, are priced for a 15-point opening-bell gain while the Dow Jones Industrial Average is called 140 points lower.

The tech-focused Nasdaq, meanwhile, is called 45 points lower, with early gains for Apple and modest declines for Nvidia and Tesla (TSLA) .

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In overseas markets, Europe's Stoxx 600 was marked 0.8% lower in Frankfurt following the parliamentary elections results and France's snap-election call, with Britain's FTSE 100 down 0.42% in London.

France's CAC-40, meanwhile, slumped 2.05% in Paris while benchmark 10-year OATs, the equivalent of a U.S. Treasury bond, saw yields rise to 3.19%, the highest level of the year.

Overnight in Asia, a weaker yen helped the Nikkei 225 close 0.8% higher in Tokyo, with banks and exports stocks leading the advance. The regionwide MSCI ex-Japan benchmark slipped 0.43% into the close of trading.