S&P futures steady as traders await bank results: Market recap

(Times Of Update) — S&P 500 futures steadied Friday after technology stocks fell on Wall Street, with traders now awaiting the next round of price data as well as earnings reports from some of the biggest banks.

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As Wall Street giants prepare to begin the earnings cycle, investors are turning to cheaper cyclical stocks, including banks and mega-cap technology companies. Contracts on the Nasdaq 100 fell after dropping 2.2% on Thursday as inflation data supported the Federal Reserve’s call for interest rate cuts.

“The expectation is that the rest of the market will close the gap with the big tech caps. That means earnings are widening,” Supriya Menon, head of EMEA multi-asset strategy at Wellington Management, said in an interview with Times Of Update TV. “As we look ahead, we see big tech caps moderating their earnings in the coming quarters.”

JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. are scheduled to report results later, followed Monday by Goldman Sachs Group Inc. Morgan Stanley and Bank of America Corp. will report results Tuesday.

Treasury yields were steady after the prospect of a U.S. interest rate cut pushed 10-year yields down seven basis points to 4.21% in the previous session. The dollar index remained near a five-week low after falling by the biggest margin since May on Thursday.

Despite the latest setback, global stocks are set for their sixth weekly advance, the longest stretch since March, as Fed easing bets support broader risk sentiment.

U.S. inflation data prompted traders to fully price in a rate cut in September and at least two by year-end. Chicago Fed President Austan Goolsbee called the CPI data “excellent,” saying the report provided the evidence he’s been waiting for to be confident the central bank is on track to hit its 2% target. Producer price data later Friday will complete the picture, while investors will also be watching

The Stoxx Europe 600 index rose for a third straight day, with only one industry sector, technology, in the red as chipmakers including ASML Holding NV and ASM International NA followed their U.S. peers lower. Telecom stocks led the advance, with Swedish network equipment maker Ericsson AB jumping more than 6 percent after reporting results that beat analysts’ expectations.

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Oil rose for the third straight day, on signs of strengthening demand and a signal that the Fed is moving closer to its long-awaited pivot. Gold fell after a sharp rise on Thursday.

Main events of the week:

• University of Michigan Consumer Sentiment, US PPI, Friday

• Citigroup, JPMorgan and Wells Fargo Results, Friday

Some of the main movements in the markets:

Actions

• S&P 500 futures were little changed at 4:01 a.m. ET

• Nasdaq 100 futures fell 0.2%

• Dow Jones Industrial Average futures were little changed

• The Stoxx Europe 600 rose 0.2%

• The MSCI World Index was little changed

Currencies

• The Times Of Update Dollar Spot Index was little changed

• The euro was little changed at $1.0876.

• The pound rose 0.1% to…