Futures start week on upbeat note as soft landing optimism lingers
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Boeing jumps after reaching tentative labor deal
Dell, Palantir rise as stocks to be added to S&P 500
Futures up: Dow 0.68%, S&P 500 0.74%, Nasdaq 0.85%
Updated at 7:00 a.m. ET/1100 GMT
By Shubham Batra and Shashwat Chauhan
Sept 9 (Reuters) - Futures tied to Wall Street's main indexes gainedon Monday, rebounding from heavy losses last week, as investors remained optimistic about soft landing prospects for the U.S. economy ahead of a crucial inflation report later in the week.
All megacap stocks rose in premarket trading, with Tesla TSLA.O leading the gains, last up 1.7%.
Most chip stocks, which also saw heavy selling last week, were on the rise with AMD AMD.O and Marvell Technology MRVL.O advancing 1% and 1.7%, respectively.
Global markets were rattled last week as uncertainty over the U.S. economy's health rippled across assets, adding fuel to an already volatile period that has investors grappling with a shift in the Federal Reserve's policy and worries over stretched valuations.
Friday's weaker-than-expected August jobs data spurred worries on economic growth and drove the Nasdaq Composite .IXIC to its worst week since January 2022, while the S&P 500 .SPX saw its biggest weekly drop since March 2023.
For the year, S&P 500 still remains 13.4% higher as hopes of a soft landing for the U.S. economy remained alive with the Fed expected to begin its rate-cutting cycle next week.
"Today, the markets remain cautiously optimistic, reflecting hopes that rate cuts will avoid a downturn. Yet, if economic conditions worsen sharply, fears of a recession could outweigh the benefits of rate cuts," said Seema Shah, chief global strategist at Principal Asset Management.
"History shows that rate cuts themselves are not the enemy —it's the economic context in which they occur that investors should be paying close attention to."
Markets will be squarely focused on U.S. consumer prices data on Wednesday that is expected to show a moderation in headline inflationin August to 2.6% on a yearly basis, while on a monthly basis it is expected to remain unchanged at 0.2%.
This will be followed by producer prices data on Thursday.
Money markets currently see a 75% chance of a 25-basis-point rate reduction by the Fed next week and expect a total monetary easing of 100 bps by the end of the year, according to CME's FedWatch Tool.
Bank of America, the most conservative among Wall Street's brokerages on the size of the Fed'sexpected rate cuts this year, raised its forecast to match most of its peers' expectations of 25 bps of easing in each of the three remaining policy meetings this year.
At 7:00 a.m. ET, Dow E-minis 1YMcv1 were up 275 points, or 0.68%, S&P 500 E-minis EScv1 were up 40 points, or 0.74% and Nasdaq 100 E-minis NQcv1 were up 156.25 points, or 0.85%.
On Tuesday, Democrat Kamala Harris and Republican Donald Trump will debate for the first time ahead of the presidential election on Nov. 5.
Among individual movers, Boeing BA.N advanced 4.7% afterit reached a tentative agreement with a union representing more than 32,000 workers in the U.S. Pacific Northwest, in a deal that could help avert a possible crippling strike as early as Sept. 13.
Dell Technologies DELL.N and Palantir PLTR.N rose 5.9% and 8% respectively, while ErieERIE.O climbed 3% in low volumes asthey are set to join the S&P 500 index onSept. 23.
These companies will replace American Airlines Group AAL.O, Etsy ETSY.O and Bio-Rad Laboratories BIO.N, respectively, in the index.
U.S. economy and markets in run-up to Fed meeting https://tmsnrt.rs/3TmLfc7
Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Sherry Jacob-Phillips and Maju Samuel
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