US stock futures edged higher on Monday as the major averages came off a winning week, while investors look forward to more corporate earnings, economic data and the Federal Reserve’s policy decision this week. Last week, the S&P 500 and Nasdaq Composite rallied 2.7% and 4.2%, respectively, breaking their recent losing streak and posting their best week since November. The Dow also gained 0.7%. Those moves came as mega-cap tech names rebounded on strong earnings, first-quarter GDP data came in weaker-than-expected and March PCE price indexes came in line with forecasts. The earnings season continues this week, with reports from Apple, Amazon and McDonald’s, among others. On the economic front, traders will assess April’s nonfarm payrolls reports on Friday for clues on the strength of the labor market. Moreover, the Fed will decide on monetary policy on Wednesday, where it is widely expected to keep interest rates unchanged.

Personal spending in the United States increased by 0.8% from the previous month in March 2024, maintaining the same pace as in February and surpassing market expectations of a 0.6% growth. Spending on goods surged by 1.3% (compared to 0.8% in February), buoyed by higher expenditures on gasoline and other energy goods, including motor vehicle fuels, lubricants, and fluids, as well as other nondurable goods such as recreational items, and food and beverages. Meanwhile, spending on services rose by 0.6% (compared to 0.8% in February), with consumers allocating more funds to healthcare, including outpatient and hospital services, and housing and utilities, particularly housing-related expenses.

In the US, all eyes will be on the Fed's interest rate decision on Wednesday, followed closely by the labor market report on Friday. Also, investors will be scrutinizing ISM Manufacturing and Services PMI’s, alongside JOLTs job openings data, foreign trade figures, factory orders, and CB consumer confidence index. Earnings season will reach its zenith with reports from heavyweight Amazon, Eli Lilly, Coca-Cola, McDonald's, Mastercard, Qualcomm, Pfizer, ADP, Apple, ConocoPhillips, Amgen, Booking, and Cigna. Internationally, April inflation rates for Germany, Spain, the Netherlands, France, the Euro Area, Italy, South Korea, Switzerland, Indonesia, and Turkey will be closely watched. Furthermore, flash Q1 GDP growth rates are set to be released for France, Spain, Germany, Italy, the Euro Area, Mexico, Saudi Arabia, and Hong Kong. Finally, S&P Global will publish manufacturing PMIs for China, Canada, Spain, Italy, South Korea, Russia, and Switzerland.

The University of Michigan consumer sentiment for the US was revised lower to 77.2 in April 2024 from a preliminary of 77.9, and compared to 79.4 in March which was the highest level since July 2021. Both current conditions (79 vs 79.3 in the preliminary estimate) and expectations (76 vs 77) declined more than initially expected. "Overall, consumers continue to express uncertainty about the future trajectory of the economy pending the outcomes of the upcoming election, but at this time there is no evidence that global geopolitical factors are on the forefront of consumers' minds", according to Surveys of Consumers Director Joanne Hsu. Meanwhile, inflation expectations for the year ahead were revised higher to 3.2% from 3.1% while the five-year outlook was confirmed at 3%.

Copper surged toward $4.6 per pound and briefly broke the threshold of $10,000 per tonne for the first time in two years in London, as growing supply worries and bullish long-term demand spurred a fresh round of speculative buying. Persistent issues in copper ore mining threatened inputs for smelters and treatment plants, most recently underscored by the shutdown of Cobre Panama, the world’s largest open-pit copper mine, suspended activity in Zambia due to power shortages, and hampered output in South America due to political protests. Consequently, the lower margins for major smelters in China, the world’s top producer, drove industry groups to plan for a 10% reduction in output for this year. The large costs of committing to new mines drove industry players to attempt M&A activity with rivals instead of starting new projects, recently headlined by BHP’s attempt to buy Anglo American. Meanwhile, copper’s usage in the global efforts of electrification continued to support fund buying.

The Japanese yen weakened past 156 per dollar, breaching that level for the first time since May 1990 as the Bank of Japan held interest rates steady as widely expected despite pressure from a sharp depreciation of the yen. Also, the central bank dropped wording on buying the same amount of bonds as before, revised its inflation forecasts higher and said the economy will likely keep growing at a healthy pace. Meanwhile, data showed Tokyo’s core inflation rate slowed to a 2-year low of 1.6% in April due largely to distortions from the start of education subsidies. The yen lost about 10% against the dollar so far this year as the BOJ held rates at near-zero levels despite elevated interest rates in other major economies, prompting traders to borrow yen and invest in higher-yielding currencies. Markets continued to watch for signals from Japanese authorities on whether they would intervene in the currency markets again to arrest the yen’s slide.