Futures Advance After Holiday Weekend
U.S. equity futures moved modestly higher on Monday as investors returned from the Independence Day holiday and prepared for a week packed with economic data and central bank commentary.
At 07:01 GMT, Dow futures were broadly unchanged, S&P 500 futures gained 0.3%, while Nasdaq 100 futures outperformed with a rise of 0.9%.
Attention now turns to upcoming economic releases after last week’s softer-than-expected U.S. employment data reduced expectations of further Federal Reserve interest rate increases. Investors will also closely monitor speeches from Fed officials for fresh guidance on monetary policy.
ISM Services Index in Focus
Markets will closely watch the release of the Institute for Supply Management’s June services PMI later on Monday.
Economists expect the non-manufacturing index to ease slightly to 54.2 from 54.5 in May. Any reading above 50 signals continued expansion in the sector.
The services industry accounts for more than two-thirds of U.S. economic activity, making the survey one of the most closely watched indicators of underlying growth.
Last week, the ISM manufacturing index weakened more than expected after May’s strong reading, reflecting caution among businesses amid geopolitical uncertainty and continued investment linked to artificial intelligence.
OPEC+ Increases Production Targets
Oil prices edged lower after OPEC+ agreed to raise crude production targets by a further 188,000 barrels per day from August.
Brent crude slipped around 0.4% to $71.86 a barrel, while U.S. West Texas Intermediate fell approximately 0.2% to $68.63.
The increase follows similar production hikes in June and July and comes as oil markets also monitor improving shipping conditions through the Strait of Hormuz following renewed diplomatic contacts between the United States and Iran.
The combination of higher production and easing supply concerns has reinforced expectations of greater global oil availability during the second half of the year.
Gold Retreats as Dollar Strengthens
Spot gold declined after recovering from multi-month lows last week, as the U.S. dollar regained some ground.
A stronger dollar tends to reduce demand for gold by making the precious metal more expensive for international buyers.
Gold had benefited from weaker U.S. payroll figures, which encouraged investors to scale back expectations of additional Federal Reserve rate increases during 2026.
Inflation and labour market conditions remain the Fed’s primary considerations when setting monetary policy, with higher interest rates generally reducing the appeal of non-yielding assets such as gold.
Foxconn Reports Strong AI-Driven Revenue Growth
Foxconn (USOTC:FXCOF), officially known as Hon Hai Precision Industry, reported a 39.8% year-on-year increase in second-quarter revenue to T$2.513 trillion ($78.71 billion), exceeding market expectations.
The world’s largest contract electronics manufacturer said demand for artificial intelligence infrastructure continued to drive strong sales of cloud and networking products, while its consumer electronics business also delivered solid growth.
Despite the robust performance, the company cautioned that geopolitical uncertainty remains an ongoing business risk.