Key Takeaways

1. SOFR Futures Hint at Possible Fed Rate Hike;
2. Tesla Soars on Major Partnership with Baidu for FSD;
3. Philips Surges 40% in Pre-Market Trading, Settles $1.1B Allegations;

I. Market Report

S&P 500 index(SPX.US) futures edged higher on Monday morning as the broad index came off its best week in several months. Traders are looking ahead to a week with more corporate earnings, key labor data and a Federal Reserve meeting.

As of 08:23 am ET (or 15:23 in Riyadh), futures tied to the S&P 500 index(SPX.US) added 0.27%. Dow Jones Industrial Average(DJI.US) futures rose 0.13%. NASDAQ(IXIC.US) 100 futures advanced 0.44%.

II. Flash Headlines

SOFR Futures Hint at Possible Fed Rate Hike 

Options on SOFR futures suggest a potential Fed rate hike of 25 basis points to 5.56% by December, up from 26% to 29% probability. SOFR, the benchmark for dollar loans, is at 5.31%. Inflation data shows a 3.7% rise in Q1 with March PCE inflation at 0.3%, hinting at persistent inflation despite prior rate hikes. The chance of maintaining higher rates into 2024 has also increased.

Bank of America: Push for Continued Intervention to Keep USD/JPY Below 155

In the absence of disappointing news on the US economy, the Japanese Ministry of Finance may have to continue FX intervention if USD/JPY is to remain below 155 to buy time before the BoJ hikes,” strategists including Shusuke Yamada and Izumi Devalier wrote in a note.

III. Stocks To Watch

Tesla Soars on Major Partnership with Baidu for FSD

Tesla Motors, Inc.(TSLA.US) roses 12% pre-market trading and Baidu rose nearly 6% at 08:09 am ET. It is reported that Tesla secured conditional approval in China, key agreements include a navigation deal with Baidu and meeting data-security standards. Read in detail>>

Tesla's Non-EV Businesses: Chamath Palihapitiya's No. 1 Pick

Venture capitalist Chamath Palihapitiya revealed his surprising ranking of Tesla Motors, Inc.(TSLA.US)'s ventures beyond electric vehicles. He declared “Ride-sharing is number one. And the absolute probably by an order of magnitude,” when asked about the company’s biggest potential growth areas.

NIO Announces Pricing for Battery Pack Flexible Upgrade Daily Rental Service

NIO(NIO.US) announced the price of its "150 kWh ultra-long-range battery pack flexible upgrade daily rental service". Of which, the daily rental base price for 70/ 75 kWh standard range battery pack upgrading to 150 kWh ultra-long-range battery pack is RMB150 per day.

Philips Surges in Pre-Market Trading, Settles US$1.1B Allegations Over Ventilator Cancer Risk

Royal Philips NV Sponsored ADR(PHG.US)'s USA stocks rose 40% at 08:16 am ET in pre-market trading. Philips announced that it had reached a settlement regarding the risk of cancer in ventilators and would pay $1.1 billion for it, but the company did not admit any fault or liability.

Fulton Financial Surges Pre-Market on Bank Acquisition of Bankrupt Republic First Bancorp

Fulton Financial Corporation(FULT.US) stocks rose 12% in pre-market trading to $17.5 at 08:05 am ET. On the news front, the Federal Deposit Insurance Corporation (FDIC) said on Friday that USA regulators have taken over Republic First Bancorp and agreed to sell it to Fulton Bank, a subsidiary of Fulton Financial.

IV. Market Movers

As of 08:22 am, ET (or 15:22 in Riyadh), top pre-market movements are as follows:

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