• US stock futures showed little change on Monday, following a strong rally last week, with all major indexes finishing near breakeven.

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• Friday’s regular trading session saw significant gains, with the Dow rising 2.12%, the S&P 500 jumping 1.45%, and the Nasdaq Composite gaining 1.07%.
• Materials, industrials, and energy sectors led the upside, as all 11 S&P sectors closed higher.
• The passing of the Fiscal Responsibility Act averted a potential US government default, boosting market confidence.
• Expectations of a pause in Federal Reserve interest rate hikes provided further support, allowing for more economic clarity.
• Upcoming economic data includes May PMI data, as well as factory and durable goods orders for April.
• The dollar index remained above 104, supported by strong jobs data that increased bets on prolonged higher interest rates.
• The US economy added 339,000 jobs in May, exceeding forecasts, although the unemployment rate rose to a seven-month high of 3.7%.
• Wage growth slowed as anticipated, and the possibility of a pause in the tightening cycle remains open.
• President Joe Biden signed the debt ceiling bill into law, avoiding a potentially disastrous US government default.

In the early European trading session, the E-mini S&P 500 remains relatively unchanged, hovering around $4288. The market exhibits an imbalanced tendency towards the upside, as it tests the swing highs from August of the previous year, potentially encountering selling pressure at these levels.

On an intraday perspective, the market is characterized by a micro balanced price range, providing traders with opportunities to assess rotational scenarios. Depending on market dynamics, the session may witness a focus on the swing highs or lows, with potential absorption occurring at these levels.

In terms of the median-term perspective, the current volatility is negatively oriented, suggesting a possible bullish market behavior. However, the influence of a stronger dollar could serve as a pressure factor, potentially leading to a balanced market sentiment.

Bank reports indicate that the recently signed debt ceiling deal and the treasury’s efforts to issue a substantial number of bonds may exert pressure on the market. These factors could further reinforce the effects of the ongoing tightening cycle.

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