Pre-Market | Jobless Claims Drop Sparks Market Volatility and Fed Rate Hike Fears

11 Jul., U.S. jobless claims unexpectedly declined to 227,000 for the week ending July 5, below estimates of 235,000, while continuing claims fell to 1.965 million, lower than expected. These data indicate resilient labor market conditions, reinforcing concerns over potential Federal Reserve interest rate hikes amid persistent inflation pressures. Meanwhile, DOW FUTURES down 0.59% in pre-market, NASDAQ FUTURES down 0.43% in pre-market, S&P FUTURES down 0.52% in pre-market.

Medtronic's stock rose by 3.21% in pre-market trading, driven by the Centers for Medicare and Medicaid Services (CMS) proposing favorable coverage for renal denervation therapy. This development has boosted investor confidence in the company's prospects. Microstrategy's stock surged by 3.05% in pre-market trading, benefiting from the recent gains in Bitcoin due to its high beta leverage. The company's significant exposure to the cryptocurrency market has made it a popular choice among investors looking to capitalize on Bitcoin's volatility. HSBC Holdings' stock dropped by 1.83% in pre-market trading, as the bank faces regulatory scrutiny and potential fines. The uncertainty surrounding these issues has weighed on investor sentiment, leading to a decline in the stock price. Banco Santander's stock fell by 1.52% in pre-market trading, following Trump's announcement of 50% tariffs on goods imports. The potential impact of these tariffs on the bank's operations and profitability has raised concerns among investors.

In pre-market trading, Signing Day surged by 147.97% as refreshed marketing strategies and an aggressive market push boosted investor confidence. Above Food also saw a significant rise, climbing 131.61% without any specific news driving the surge. Meanwhile, Capricor experienced a sharp decline, dropping 38.16% following the FDA's rejection of its drug application due to insufficient evidence. Q32 Bio also faced a setback, falling 32.23% after being removed from the S&P Global BMI Index.

US Treasury yields were mostly flat as initial jobless claims unexpectedly fell to 227,000 for the week ending July 5, and continuing claims were slightly lower than expected, signaling resilience in the labor market. Tesla will officially enter the Indian market by opening an experience center on July 15, marking its expansion there. Separately, the US Treasury Secretary mocked Elon Musk over his new political party formation, suggesting he could win votes on Mars, prompting Musk to criticize the Secretary's expertise.