The Market Brief
US equity futures cautiously higher during the overnight, building on momentum from the previous session as expectations for the Federal Reserve's interest rate cuts grew.
Impact Snapshot
🟥 ISM Services PMI - 10:00am
Macro Viewpoint
Despite the relatively light news flow y-day, equities staged a strong rebound today with 10 out of 11 sectors closing in the green.
Markets are increasingly factoring in potential Fed rate cuts following Friday’s disappointing jobs data, which initially weighed on equities but gave a strong boost to bonds.
While stocks have bounced back from their April lows, there's growing uncertainty about how well corporate America can handle the pressure from tariffs—especially if the Fed does move to provide economic support.
Positioning among investors remains tactically cautious, though still elevated over the longer term. That’s something we’re keeping a close eye on, particularly given how stretched positioning already is in the U.S.
And it's not just institutional players, U.S. households are also holding near-record levels of equities on their balance sheets.
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