Bonds & Stocks
Stock futures climbed after a key inflation gauge showed some signs of moderation, which could reduce the pressure on the Federal Reserve to deliver more than one hike by the end of 2023. Nasdaq 100 contracts climbed about 1%, signaling the tech-heavy gauge will notch a record first-half rally. Treasury two-year yields, which are more sensitive to imminent Fed moves, trimmed their advance. The dollar retreated.
Economy
Key measures of US inflation cooled in May and consumer spending stagnated, suggesting the economy's main engine is starting to lose some momentum. The personal consumption expenditures price index, one of the Federal Reserve's preferred inflation gauges, rose 0.1% in May, Commerce Department figures showed Friday. From a year ago, the measure stepped down to 3.8%, the smallest annual advance in more than two years.
World
The People's Bank of China pledged to steady the yuan and step up support for the economy as doubts grow over a recovery. The central bank will adopt "comprehensive measures and stabilize expectations" about the currency and "resolutely prevent risks of big fluctuations," the PBOC said in its quarterly monetary policy report published late Friday. The monetary authority also vowed to increase support for the economy as domestic demand is still "not strong," according to the statement.