U.S. stock futures rose Monday, with Wall Street looking to build on the previous session’s strong gains, after new jobs data revived hopes of the Federal Reserve cutting interest rates. Dow Jones Industrial Average futures climbed 140 points, or 0.4%. S&P 500 futures were 0.4% higher, while Nasdaq-100 futures added 0.3%. The Dow, S&P 500 and Nasdaq Composite popped more than 1% each on Friday after fresh nonfarm payrolls data on Friday showed the U.S. economy added fewer-than-expected jobs in April and an increase in unemployment, easing fears of an overheating economy. Traders became enthusiastic that the Fed could start lowering rates sooner this year. “It feels a little early to declare that the U.S. economy has made a soft landing since the Fed still is holding interest rates at restrictive levels. But the April jobs report helps clear a path to that destination,” said Comerica Bank chief economist Bill Adams. Investors will get more clues on future Fed moves on Monday, with Richmond Fed President Tom Barkin and New York Fed President John Williams slated to speak. While the peak of the first-quarter earnings season has passed, investors are still watching key companies set to report this week, including Dow member Disney on Tuesday and Uber on Wednesday. “Earnings beats have rebounded in Q1, helped by margins,” Barclays’ Emmanuel Cau wrote in a Friday note. “While misses got punished, overall earnings resilience has likely limited the downside for equities.” On Saturday, Warren Buffett’s Berkshire Hathaway reported a nearly 40% surge in year-over-year operating earnings for the first quarter. Berkshire also held its annual shareholder meeting. U.S. Treasury yields were lower Monday, adding to the declines seen Friday after the April jobs report showed weaker-than-expected payrolls growth. The yield on the 10-year Treasury was off 2 basis points at 4.481%. The 2-year Treasury yield slipped 1 basis point to 4.799%. Asia-Pacific markets tracked Wall Street gains on Monday as a softer-than-expected U.S. jobs report fueled hopes that the Federal Reserve could start cutting rates soon. Japan and South Korea’s markets are closed for a public holiday. Australia’s S&P/ASX 200 rose 0.7% to close at 7,682.4, marking a third straight day of gains. Hong Kong’s Hang Seng index rose 0.47%, while mainland China’s CSI 300 rose 1.48% to close at 3,657.88 as traders returned from Labor Day holiday. U.S. oil rose Monday, trying to recover from last week’s steep declines, after Israel told Palestinians to evacuate the southern Gaza city of Rafah, and Saudi Aramco raised its official crude prices. West Texas Intermediate June contract: $78.88 a barrel, up 77 cents, or 1%. Year to date, U.S. crude oil has gained 10%. Brent July contract: $83.66 a barrel, up 70 cents, or 0.83%. Year to date, the global benchmark has risen 8.5%. Gold prices gained on Monday, deriving support from a soft U.S. dollar after a weaker-than-expected jobs report revived expectations that Federal Reserve will cut interest rates this year. Spot gold was up 0.8% at $2,320.33 per ounce. U.S. gold futures gained 0.9% to $2,329.10.
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