5 things to know before the stock market opens Monday

Jun 10, 2024

News Update – Pre-Markets

Here are five key things investors need to know to start the trading day:

1. Nvidia splits

Stock futures slipped Monday morning after polishing off a winning week on Friday. Dow Jones Industrial Average futures fell by about 0.2%, while S&P 500 futures and Nasdaq 100 futures ticked fractionally lower. Nvidia stock, increasingly a market driver of late, was also down in premarket trading. Shares of the AI-enabling chipmaker were down 0.2% after a 10-1 split took effect. Shares now trade for around $120 apiece. Follow live market updates.

2. Doves cry

U.S. Federal Reserve Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., May 1, 2024. 

Kevin Lamarque | Reuters

Good jobs news Friday was bad news for investors waiting for the Federal Reserve to cut rates. Market expectations for an interest rate reduction dropped after job and wage growth in May came in better than expected. Fed funds futures pricing now indicates almost no chance of a rate cut at policy meetings this month and next month, and only a 54% probability in September. Hopes for easier monetary policy — and bigger stock market returns that could come with it — have dwindled this year as inflation remains higher than the Fed’s 2% target. The consumer price index due Wednesday and the producer price index set for Thursday will both help to determine the central bank’s rate path ahead.

3. Gains, stopped

A holding page for Keith Gill, a Reddit user credited with inspiring GameStop’s rally, before a YouTube livestream arranged on a laptop at the New York Stock Exchange (NYSE) in New York, US, on Friday, June 7, 2024.

Michael Nagle | Bloomberg | Getty Images

GameStop came back to Earth on Friday. The video game retailer’s shares tumbled 40% after it reported sales fell 29% in the first quarter, and it said it planned to sell more stock. Not even a livestream from the trader known as “Roaring Kitty” helped. The godfather of the meme stock craze, who can send GameStop shares soaring with a social media post, offered little new information about the company and his stake in it. GameStop’s stock spiked more than 40% on Thursday after the trader, Keith Gill, scheduled the livestream. Friday’s plunge continued a wild ride for GameStop since Gill resurfaced last month. The stock was halted 17 times during the session, the most since trading was suspended 19 times in January 2021.

4. Double or nothing

French President Emmanuel Macron speaks with CNBC’s Andrew Ross Sorkin (not shown), in Paris on May 23, 2024.


French President Emmanuel Macron is dissolving the nation’s parliament and calling for a new legislative election after a humbling defeat for his party in an EU vote. The election results on Sunday showed Marine Le Pen’s far-right National Rally party with around 31% of the vote, more than doubling the support for Macron’s centrist Renaissance Party. “This is an essential time for clarification,” Macron said in a national address Sunday. “I have heard your message, your concerns and I will not leave them unanswered.” French voters will return to the polls June 30 and July 7.

5. Costcars

U.S. automakers have had a hard time selling their electric vehicles. Enter Costco. General Motors is increasingly selling EVs through its partnership with the membership club’s Costco Auto Program. It acts as an intermediary between franchised dealers and automakers and its members, who can receive discounts on vehicles. GM North America President Marissa West said the automaker is “bullish” on Costco and its ability to encourage EV adoption. Costco’s program has facilitated an average of more than 500,000 vehicle sales annually over the last five years.

– CNBC’s Sarah Min, Jeff Cox, Fred Imbert, Yun Li, Alex Harring, Mike Wayland and Katrina Bishop contributed to this report.

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