Pre-Market | Market Gains on US Data, Political Tension, and Tech Surge

27 Aug., DOW FUTURES up 0.06% in pre-market, NASDAQ FUTURES up 0.09% in pre-market, S&P FUTURES up 0.09% in pre-market. The market is showing pre-gains with DOW FUTURES up 0.06%, NASDAQ FUTURES up 0.09%, and S&P FUTURES up 0.09% in pre-market. This comes as upbeat US consumer confidence and manufacturing data bolster the economy, while Trump's move to remove Federal Reserve Governor Cook adds political tension. Market expectations strongly anticipate Fed rate cuts, with CME data showing nearly 88% probability of a 25 bps cut in September. The focus on potential political influence on the Fed and very high market-implied probability of near-term rate cuts is a key macro driver for equity markets.

Royal Bank of Canada shares rose 2.51% in pre-market trading, driven by strong quarterly earnings growth across all business segments. Palantir Technologies Inc. saw its stock rise 1.67% in pre-market trading, boosted by a new U.S. government contract for its AI analytics platform. Meanwhile, Bank Bilbao Vizcaya Argentaria SA shares dropped 2.33% in pre-market trading, as intensifying fintech competition and persistent emerging market volatility threaten its customer base and earnings stability. Banco Santander SA shares also declined, dropping 1.57% in pre-market trading.

In pre-market trading, Novabay shares surged by 69.08% following the declaration of a one-time special cash dividend of $0.80 per share. MongoDB also saw a significant rise of 29.23%, driven by strong quarterly results fueled by robust AI demand and cloud service growth. Meanwhile, Fenbo's stock dropped by 14.44% amid signs of weakness following earlier gains in regular session trading. Beneficient's shares declined by 14.18% due to waning investor confidence from broader market trends.

Cathay Pacific purchased 14 Boeing 777-9 aircraft for approximately $8.1 billion, with deliveries anticipated by 2024 or earlier. Meta will launch new Ray-Ban AI glasses incorporating augmented reality in September, featuring key components exclusively supplied by Lens Technology. Global hedge funds increased exposure to Chinese equities, particularly onshore A-shares, with significant inflows into consumer staples and industrial sectors, marking the strongest monthly buying surge since February. In the US, improved economic data showed higher consumer confidence and better-than-expected manufacturing figures; markets anticipate elevated probabilities of Federal Reserve rate cuts soon, amid ongoing political shifts that could influence monetary policy decisions.