U.S. holiday pause, softer Fed expectations and Asia rebound shape global markets: Dow Jones, S&P, Nasdaq, Wall Street Futures

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U.S. financial markets will remain closed on Friday for the Independence Day holiday, but futures pointed to a stronger Wall Street open when trading resumes. Asian equities recovered after a volatile week, helped by fading expectations of a near-term Federal Reserve rate increase following weaker-than-expected U.S. employment data. Investors also focused on gains among Tesla’s (NASDAQ:TSLA) Chinese suppliers and stronger-than-forecast growth in China’s services sector. Wall Street futures advance after weaker jobs data U.S. index futures moved higher after June’s employment report suggested a slower pace of hiring, easing fears that the Federal Reserve would tighten monetary policy again in the coming weeks. By 03:11 ET (07:11 GMT), Dow futures were up 148 points, or 0.3%, S&P 500 futures had added 30 points, or 0.4%, while Nasdaq 100 futures climbed 278 points, or 0.9%. Wall Street ended Thursday’s shortened trading week with mixed performances across the major indices. Meanwhile, benchmark 10-year Treasury yields were little changed and two-year yields edged lower. Investor sentiment shifted after the U.S. Labor Department reported softer-than-expected payroll growth in June. Although the unemployment rate fell to a one-year low of 4.2%, markets interpreted the report as reducing the urgency for further monetary tightening. Combined with comments earlier in the week from Federal Reserve Chair Kevin Warsh indicating inflation pressures had eased, expectations for a July rate increase declined sharply. Analysts at Deutsche Bank noted that market expectations for a July rate hike had fallen from 34% on Tuesday to just 18% by Thursday’s close. “Moreover, just 30 [basis points] of hikes are now priced in by the December meeting, the fewest since the Fed meeting a couple of weeks ago when the dot plot surprised in a hawkish direction,” they added. Asian markets recover as technology shares rebound Asian equity markets posted gains on Friday as investors responded positively to the shift in Federal Reserve expectations while bargain hunting returned to technology stocks. Semiconductor companies led the recovery after heavy profit-taking earlier in the week, when concerns about the sustainability of artificial intelligence infrastructure spending weighed on the sector. Samsung Electronics was among the strongest performers after reports that Anthropic, the company behind Claude Code, is exploring plans to develop its own AI chip in partnership with the South Korean technology group. The news helped lift South Korea’s KOSPI index after two consecutive sessions of losses, while Japan’s Nikkei 225 and Singapore’s STI also moved higher. Tesla suppliers rally in China Chinese suppliers to Tesla (NASDAQ:TSLA) advanced after the electric vehicle manufacturer reported stronger-than-expected second-quarter deliveries, raising hopes that demand may be stabilising after two years of declining sales. Auto parts manufacturers Ningbo Xusheng, Ningbo Tuopu and Zhejiang Sanhua gained between 5% and 9% in mainland Chinese trading. Tesla delivered a record 480,126 vehicles during the second quarter, supported by solid demand in Europe and modest growth in China. The introduction of lower-priced versions of the Model 3 and Model Y helped support sales, while the updated Model Y also contributed to stronger production and deliveries from the company’s Chinese operations. China’s services activity exceeds expectations China’s services sector expanded at a faster pace than economists had forecast in June, according to a private survey released on Friday. The RatingDog Services Purchasing Managers’ Index eased slightly to 54.1 from 54.4 in May but comfortably exceeded expectations of 53.0. Any reading above 50 signals expansion, with the index remaining in growth territory continuously since January 2023. The survey showed increases in both domestic and international orders, while export demand for services reached its strongest level since October 2024. Companies also increased selling prices for the first time in four months as supply disruptions linked to the Middle East pushed input costs higher. Strait of Hormuz fees remain under discussion Bloomberg News reported that some European policymakers have begun considering the possibility that shipping companies may eventually have to pay transit fees to Iran and Oman for passage through the Strait of Hormuz. According to people familiar with the discussions, some Gulf Arab officials also believe a form of service charge could emerge, although this is not yet the official position of their governments. Bloomberg added that uncertainty remains over the structure and level of any future fees, with questions continuing over the potential implications for international maritime law. The Strait of Hormuz has remained a focal point of geopolitical tensions since Iran effectively closed the waterway following the joint U.S.-Israeli military action in late February. Oil prices initially surged but have since retreated to around pre-conflict levels following the interim peace agreement between the United States and Iran. Tesla stock price

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