• US stock futures show slight gains as investors await May jobs report for economic and monetary policy insights.
• Lululemon, MongoDB, Five Below, Asana, and Samsara report better-than-expected quarterly results, while Broadcom, PagerDuty, ChargePoint, and SentinelOne disappoint.
• Dow, S&P 500, and Nasdaq Composite rise in regular trading, with technology sector leading the gains.
• House passes debt ceiling bill, sending it to the Senate ahead of June 5 deadline.
• ISM data reveals contraction in US manufacturing activity for the fifth consecutive month, accompanied by significant easing of price pressures.
• Dollar index stabilizes around 103.5, set for first weekly drop in four weeks, as comments from Federal Reserve officials suggest potential pause in tightening cycle.
• Federal Reserve Governor and Philadelphia Fed President hint at skipping rate hike in next meeting but clarify it does not signal the end of the tightening cycle.
• Jobs figures continue to indicate a strong labor market.
• Investors eagerly anticipate May jobs report for further clues on the economy and monetary policy.
• House of Representatives approves Fiscal Responsibility Act of 2023, awaiting Senate approval before June 5 default deadline.

The E-mini S&P 500 experienced a 0.5% increase, reaching approximately $4248, and currently trades with an imbalance above the previous balanced price range, as well as the Year’s, quarter’s, and month’s developing value areas. The upcoming jobs data will play a crucial role in shaping market sentiment, with the potential for a weaker data outcome to have a positive impact on monetary policy.

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Looking at the median-term perspective, there are indications of an upward trend for the month, supported by the presence of negative volatility that contributes to a bullish sentiment. Furthermore, a potential weakening in the dollar could provide additional support. However, if the jobs data reveals stronger than expected results, it may exert pressure on the market as the central bank might choose to maintain higher interest rates for a longer period than initially anticipated.

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