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Exchange-Traded Funds, Equity Futures Higher Pre-Bell Amid S&P 500, Nasdaq Rally, Middle East Peace Optimism

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The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.7%, and the actively traded Invesco QQQ Trust (QQQ) was 1.7% higher in Wednesday's premarket activity amid all-time highs achieved by the S&P 500 and the Nasdaq along with continued optimism for an end to the Middle East conflict.

US stock futures were higher, with S&P 500 Index futures up 0.3%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures gaining 0.7% before the start of regular trading.

The Richmond Federal Reserve's manufacturing and business conditions readings for May are due to be released at 10 am ET, followed by the Dallas Fed's non-manufacturing survey for May at 10:30 am ET.

Mortgage applications fell by 8.5% in the week ended May 22 as a sharp increase in mortgage rates pushed down refinancing activity and new home applications, according to Mortgage Bankers Association data released Wednesday.

In premarket activity, bitcoin was down by 0.1%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.2% higher, Ether ETF (EETH) advanced 2.8%, and Bitcoin & Ether Market Cap Weight ETF (BETH) increased by 0.2%.

Power Play:

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) advanced 1.5%, while the Vanguard Industrials Index Fund (VIS) gained 1.7%, and the iShares US Industrials ETF (IYJ) rose 1.3%.

Dycom Industries (DY) stock was up more than 23% before the opening bell after the company reported higher fiscal Q1 adjusted net income and contract revenue.

Winners and Losers:

Financial

The State Street Financial Select Sector SPDR ETF (XLF) dropped 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.3%, while Direxion Daily Financial Bear 3X Shares (FAZ), was 0.2% higher.

Qfin (QFIN) stock was up more than 7% even after the company posted lower Q1 non-GAAP net income and net revenue.

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 1.4% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) dropped by 1.4%. The iShares US Consumer Staples ETF (IYK) retreated by 1.6%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) increased by 0.2%. The VanEck Retail ETF (RTH) was 1.2% lower, while the State Street SPDR S&P Retail ETF (XRT) was 0.5% higher.

PDD Holdings (PDD) shares were down more than 7% after the company posted Q1 non-GAAP earnings and revenue that missed analysts' estimates, with non-GAAP EPS declining year over year.

Technology

The State Street Technology Select Sector SPDR ETF (XLK) increased by 2.6%, and the iShares US Technology ETF (IYW) was 2.3% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 2.4%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) gained by 4.7%, while the iShares Semiconductor ETF (SOXX) rose by 6.1%.

Micron Technology (MU) shares were up more than 7%, extending gains after the company's market capitalization eclipsed $1 trillion for the first time on Tuesday.

Energy

The iShares US Energy ETF (IYE) was 2.5% lower, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 2.7%.

TotalEnergies (TTE) is facing a dispute with Mozambique over about $2 billion in costs tied to delays at its liquefied natural gas project in the country, Bloomberg reported, citing an unnamed person familiar with the matter. Shares of TotalEnergies were down more than 2% pre-bell.

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.9%, the Vanguard Health Care Index Fund (VHT) was up 0.7%, while the iShares US Healthcare ETF (IYH) lost by 0.7%. The iShares Biotechnology ETF (IBB) was 0.4% higher.

Guardant Health (GH) shares were up more than 5% after the company said its Shield blood test has been included in the American Cancer Society's updated Colorectal Cancer Screening guidelines.

Commodities

Front-month US West Texas Intermediate crude oil fell by 5.6% to $88.54 per barrel on the New York Mercantile Exchange. Natural gas was up 1.8% at $2.95 per 1 million British Thermal Units. The United States Oil Fund (USO) retreated by 2.7%, while the United States Natural Gas Fund (UNG) was 0.3% lower.

Gold futures for August retreated by 1.6% to $4,461.50 an ounce on the Comex. Silver futures fell by 2.9% to $74.35 an ounce. SPDR Gold Shares (GLD) was up by 0.04%, and the iShares Silver Trust (SLV) rose by 2%.

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Britain's Energy Regulator Lifts Price Cap due to Higher Gas Prices

Great Britain's energy price cap from July 1 through September 30 will increase by 13%, following a rise in wholesale gas prices, driven by the conflict in the Middle East, energy regulator Ofgem said Wednesday.The price cap, applicable for customers who have not signed up for a fixed-rate tariff, "sets a maximum rate per unit and standing charge that can be billed" for energy use, according to Ofgem.Around 22 million customers, equivalent to 40% of total accounts, are under a fixed-tariff scheme and are not affected by the price hike.From July, Ofgem noted that affected customers will see a 5% increase in electricity bills and a 24% jump in gas bills, reflecting "the increase in the amount of renewable generation on the system and therefore reduced reliance on gas."For a typical household paying by direct debit and consuming both electricity and gas, the current price cap of 1,641 British pounds ($2,204.14) per year will increase by 18 pounds per month beginning July, according to the statement.Ofgem chief executive Tim Jarvis urged consumers to explore fixing tariffs and switching payment methods from standard credit to direct debit to enable savings of around 143 pounds on bills.Jarvis also said investments in energy networks will be unlocked to limit exposure to price volatility, while enhancing system security and resilience.

Commodities

Market Chatter: Exxon Mobil, ConocoPhillips Seek Safeguards For Return to Venezuela After Nearly Two Decades

US energy giants Exxon Mobil (XOM) and ConocoPhillips (COP) are mulling a return to Venezuela after nearly two decades, pushing for contractual safeguards and the recovery of billions owed since their exit, Bloomberg reported citing people familiar with the matter.Both companies have reportedly held discussions with the government of President Delcy Rodriguez, who has led the country since the US arrest of her predecessor Nicolas Maduro, to tap the South American nation's massive oil reserves.While they said much has yet to be done regarding production sharing agreements and other matters, they were encouraged by the willingness of Rodriguez and her administration to negotiate different aspects of the contracts.The companies are reportedly looking for ways to structure their investments to prevent a repeat of losses they suffered when their assets were previously nationalized.This includes the use of stability clauses, which prevent successive governments from unilaterally changing contracts, and requiring all disputes to be settled via international arbitration instead of local courts."Bringing back Exxon Mobil and ConocoPhillips is a top priority for the government, and they're putting a lot of resources and effort behind it," said Carlos Bellorin, an executive vice president at Welligence Energy Analytics, told Bloomberg.He said the deal needs to be attractive to persuade these companies to invest.Chevron (CVX), another major US oil and gas company, has remained present in Venezuela throughout the nationalizations by former President Hugo Chavez. That positions it well now to ramp up output, with crude hovering around $100 per barrel.Neither ExxonMobil nor ConocoPhillips immediately responded to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$COP$CVX$XOM
Commodities

Market Chatter: Canada Reaches Landmark German LNG Export Deal

Canada has reached a supply agreement to export liquefied natural gas from its Pacific coast to Germany, from the planned Ksi Lisims floating export project in British Columbia, Bloomberg reported on Tuesday.German state-owned energy firm Securing Energy for Europe will underwrite long-term volumes from the Ksi Lisims LNG export project, the article said.The proposed facility is a massive floating export development co-owned by Houston-based Western LNG, Canadian producer consortium Rockies LNG Partners, and the Nisga'a First Nation, who own the strategic development land near the Alaska panhandle.Engineered with a design capacity of 12 million metric tonnes per annum the terminal will rank as Canada's second-largest LNG export facility.While the asset has already secured key provincial and federal environmental approvals, securing firm, creditworthy international offtake agreements has been the primary bottleneck preventing developers from executing financial close.With blockades in the Middle East restricting flows through the Strait of Hormuz and recent trade friction with the Trump administration in Washington, European buyers are eager to establish alternative gas supply sources.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)