US Open: Market under pressure from US data and lack of guidance from Warsh

Major US indices opened the session below their previous closing levels, as the latest macroeconomic releases slightly dampened investor sentiment and weighed on short-term market mood. Investors are reacting primarily to a series of weaker manufacturing readings and signs of a gradual cooling in the labor market, increasing uncertainty about the pace of economic growth in the coming months.

The ISM manufacturing index and final PMI readings for the US manufacturing sector came in below expectations, pointing to a clear slowdown in industrial activity and weaker momentum in new orders. At the same time, the ADP report showed that private sector employment rose by 98,000 in June, also below forecasts, suggesting that the labor market remains resilient but is gradually losing momentum.

At the same time, Kevin Warsh, in his first global appearance, maintained a very cautious tone and once again declined to provide any guidance regarding the Federal Reserve’s July rate decision. He stressed that the central bank will not signal future moves, marking a continued shift away from so-called forward guidance and a stronger focus on incoming data, particularly inflation and labor market indicators. Warsh also emphasized that restoring price stability remains the top priority, while recent declines in volatility and bond yields suggest a more stable macroeconomic environment.

His remarks also touched on technological transformation, as he suggested that the United States could be one of the key beneficiaries of artificial intelligence, potentially boosting productivity and long-term economic growth. He additionally announced the formation of special task forces aimed at redefining how the Federal Reserve operates and communicates, reflecting a broader debate on monetary policy in an environment of heightened uncertainty.

Source: XTB Research

US equity futures remain in a consolidation phase, trading within a narrow range near unchanged levels. There is no clear directional catalyst, while recent US data continues to point to a modest slowdown in economic momentum. The combination of weaker manufacturing readings and signs of cooling labor market conditions is increasing investor caution and limiting risk appetite. At the same time, markets remain in a wait-and-see mode, balancing profit-taking after earlier gains against a lack of strong enough triggers for either a deeper sell-off or a decisive upside move.

Source: xStation5

Company news

Source: XTB Research

Meta (META.US) shares are rising sharply after reports that the company is considering launching its own cloud platform to commercialize excess computing capacity used for artificial intelligence development. According to media reports, Meta is evaluating offering clients access to both its AI models and computing infrastructure, which could position the company to compete with major cloud providers such as Amazon, Microsoft, and Google. This move would help Meta better monetize its multi-billion-dollar investments in data centers and reduce its reliance on advertising revenue. Investors reacted positively, seeing the initiative as a potential new long-term growth driver in one of the fastest-growing segments of the technology market.

Sony (SONY.US) announced that starting in January 2028, all new PlayStation games will be released exclusively in digital format, marking the end of physical disc production for new titles. Games released before that date will still be available on physical media, while the company cites the growing popularity of digital distribution and changing gamer preferences as the key reasons behind the decision.

Nike (NKE.US) disappointed investors with its earnings release, sending the stock to its lowest level in more than a decade. The market reacted negatively mainly to weak guidance and persistent demand challenges, particularly in China. However, analysts still believe the company may gradually return to a growth path thanks to strategic changes under new leadership and an updated product lineup, although the recovery process is expected to take longer than previously anticipated.

ServiceNow (NOW.US) rallied after analysts at Guggenheim upgraded the stock. They argue that the recent pullback has made the valuation more attractive again, while the company’s strong position in enterprise software and its growing AI-driven solutions could continue to support earnings growth.

Constellation Brands (STZ.US) is rising despite missing first-quarter revenue expectations. Investors focused instead on stronger-than-expected earnings, solid performance in the beer segment, and an improved free cash flow outlook. Additional support came from a quarterly dividend of $1.03 per share, along with continued share buybacks and reaffirmed full-year guidance.