Tesla shares climb on GM pact; US stock futures drift

BLOOMBERG

US stock futures indicated a pause after the S&P 500’s rally to a bull market, while the dollar headed for its biggest weekly loss in two months on bets that the Federal Reserve is nearing the end of its hiking cycle.
Tesla Inc shares jumped 6% in pre-market trading and was on track to rise for an 11th straight session as General Motors (GM) Co announced it’s joining the company’s charging network. GM advanced 4.3%. DocuSign Inc rose 5.3% after the e-signature software company posted an earnings beat and raised its full-year forecast.
Investors may be reluctant to take big positions ahead of next week’s interest-rate decisions from the Fed and the European Central Bank. Unexpected hikes from two central banks this week have raised speculation that policymakers may have to keep interest rates higher for longer. Meanwhile, US data pointing to a cooling labor market has supported the consensus view that the Fed is likely to pause.
“The backdrop of late has been one of heightened macro uncertainty, but with inflation still running uncomfortably high,” ING rates strategists led by Benjamin Schroeder wrote in a note. “Our house view is that the Fed is already at its peak policy rate, though with the caveat that a higher CPI reading could still eke out a hike next week. In any case, the Fed is likely to leave the door open to more.”
Treasury yields ticked higher on Friday, with the 10-year rate at 3.75%. Currently, swaps traders have priced in roughly a one-third chance of a Fed hike next week, and almost 90% odds of one in July.
The rate-sensitive tech sector saw weekly fund outflows for the first time in two months, according to Bank of America Corp citing EPFR Global data. That followed record inflows in the previous week amid the frenzy for artificial intelligence.
Elsewhere on Friday, European stocks retreated, with a downbeat outlook from Croda International Plc weighing on chemical shares. Japan’s Nikkei 225 capped a ninth week of gains, up 2.4%, for its longest streak in more than five years.
In currencies, Turkish lira extended its decline to an all-time low against the dollar, taking its weekly drop to 11%. President Recep Tayyip Erdogan completed key appointments of the economy team, which is expected to turn to more conventional policies.