Market Overview
U.S. stock futures were largely flat after the Independence Day holiday, with the Dow futures unchanged, the S&P 500 futures up 25 points (0.3%) and the Nasdaq 100 futures up 276 points (0.9%) by 03:01 ET (07:01 GMT). The market focus shifted to the week’s economic calendar, especially the Institute for Supply Management (ISM) services PMI for June and the latest OPEC+ production decision.
US Services PMI
The ISM non‑manufacturing purchasing managers’ index for June is forecast at 54.2, a marginal decline from 54.5 in May. A reading above the 50‑point threshold signals expansion, and the services sector accounts for more than two‑thirds of U.S. economic growth.
OPEC+ Production Decision
On Sunday, OPEC and its allies, including Russia, announced an additional increase of 188,000 barrels per day to their output targets starting in August, on top of the incremental hikes already scheduled for June and July. The announcement pushed Brent crude futures down 0.4% to $71.86 per barrel and West Texas Intermediate (WTI) futures down 0.2% to $68.63 per barrel by 03:26 ET. The price move reflected expectations of higher global oil supplies and continued monitoring of geopolitical developments in the Strait of Hormuz.
Commodity Prices
Spot gold retreated as the U.S. dollar regained strength, with the greenback rising from near two‑week lows. The dollar’s appreciation makes gold more expensive for foreign buyers, contributing to the metal’s decline after it had rebounded from eight‑month lows the previous week. Gold’s pull‑back followed weaker U.S. non‑farm payrolls, which reduced market expectations of aggressive Federal Reserve rate hikes in 2026.
Foxconn Quarterly Results
Hon Hai Precision Industry Co., Ltd. (Foxconn, ticker 2317) reported second‑quarter (April‑June) revenue of T$2.513 trillion (approximately $78.71 billion), a 39.8% year‑on‑year increase and well above the LSEG consensus estimate of T$2.372 trillion. The company attributed the surge to strong demand for artificial‑intelligence‑related cloud and networking products, while its consumer‑electronics segment also posted solid growth. Foxconn cautioned that geopolitical volatility could affect future performance.
Additional Context
The softer June payrolls released last week had already dented expectations of imminent Fed rate hikes, and upcoming speeches by Federal Reserve officials are expected to provide further guidance on the policy trajectory for the remainder of the year.