Stock futures edge up
U.S. stock futures rose early Monday, implying stocks would attempt to recover last week’s losses, as traders await the publication of minutes from the Federal Reserve’s latest two-day policy meeting.
As of 5:40 a.m. ET, Dow Jones futures were up 187 points, or 0.60% to 31,400 while S&P 500 gained 27 points, or 0.69% to 3,926.50. The tech-heavy Nasdaq-100 futures rose 79.25 points, or 0.67% to 11,920.
This week’s primary focus will be the latest set of FOMC minutes, with traders hoping to get some insight into how far policymakers plan to raise interest rates to fight inflation.
At the meeting earlier this month, the central bank intensified its battle against inflation by hiking interest rates by a 50 basis points — its most aggressive move in 2022 years.
Fed policymakers have indicated they will continue raising borrowing costs until inflation stabilizes. The central bank will publish the minutes on Wednesday.
VMware surges 21% amid rumors of acquisition by Broadcom
On the M&A front, shares of VMware (NYSE: VMW) are rallying on news of its potential acquisition by Broadcom (NASDAQ: AVGO).
Per an article by Bloomberg, Broadcom is in discussions to take over VMware in a cash-and-stock deal that could be announced soon.
People familiar with the matter told the news outlet that the discussions are ongoing, but there is no guarantee they will lead to an agreement.
Michael Dell, CEO of Dell Technologies (NYSE: DELL), is the biggest investor in VMware. Dell Technologies spun off its 81% stake in VMware late last year.
VMware shares were marked $20.47, or 21.39% higher to $116.18 in premarket trading, while Broadcom fell 4.27% to $520.
Biden launches a trade deal with 12 Asian nations
Meanwhile, President Joe Biden has launched a new trade deal with 12 Indo-Pacific nations, in his first major attempt to boost America’s economic profile in Asia.
Biden, who is in his first official trip to Asia, unveiled a new U.S. strategy called the Indo-Pacific Economic Framework.
Countries covered by the pact include Japan, South Korea, Australia, New Zealand, Singapore, India, the Philippines, Vietnam, Brunei, Indonesia, Malaysia, and Thailand.
While precise details of the IPEF have not been revealed, it’s expected to focus on tax and anti-corruption, supply chain commitments, digital economy, and clean energy.
At a news conference with Japan’s Prime Minister Fumio Kishida, Biden also acknowledged the American economy is facing problems, but they are “less consequential” compared to the rest of the world.
