US STOCKS-Wall St set for subdued open; Tesla extends rally

Electric-vehicle maker Tesla gained 6.0% in premarket trading, a day after its car deliveries topped market estimates on the back of incentives and steeper discounts. All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite rallying 31.7% to its sharpest first-half rise in four decades, in the face of concerns over a recession and a banking crisis.

U.S. stock indexes were set to kick off the new quarter on a lackluster note on Monday, while Tesla was on course to extend gains after reporting record second-quarter vehicle deliveries. Electric-vehicle maker Tesla gained 6.0% in premarket trading, a day after its car deliveries topped market estimates on the back of incentives and steeper discounts.

All three major U.S. indexes ended the first half of the year on a positive note on Friday, with the Nasdaq Composite rallying 31.7% to its sharpest first-half rise in four decades, in the face of concerns over a recession and a banking crisis. "Technology will still provide the leadership in terms of earnings into the second half of the year given the enthusiasm about artificial intelligence, but there will be mixed results in other sectors," said Peter Andersen, founder of Andersen Capital Management.

Traders awaited the minutes of the Federal Reserve's last policy meeting for cues on the central bank's monetary tightening path. They are scheduled to be released on Wednesday. Meanwhile, a closely watched gap between the yields on two- and 10-year Treasury notes hit its deepest inversion in over four-decades, signaling that financial markets see the current Fed tightening cycle eventually tipping the U.S. into a recession.

Megacap companies including Apple, Microsoft , Amazon.com and Alphabet slipped between 0.1% and 0.4%, as worries over higher borrowing costs eating into their earnings soured investor sentiment. At 08:40 a.m. ET, Dow e-minis were down 77 points, or 0.22%, S&P 500 e-minis were down 4.25 points, or 0.09%, and Nasdaq 100 e-minis were up 6 points, or 0.04%.

Trading volumes are expected to be thin with markets open for just half the day, ahead of the Independence Day holiday on Tuesday. Investors also awaited surveys on U.S. manufacturing and services, job openings data as well as the June payrolls report.

U.S.-listed shares of Chinese carmakers Xpeng, Li Auto and Nio rose between 4.3% and 6.8% after the companies reported a surge in June vehicle deliveries compared with a year earlier. Oil majors Chevron and Exxon Mobil gained 0.7% and 0.6%, respectively, tracking a rise in oil prices after top exporters Saudi Arabia and Russia announced supply cuts for August.

Fidelity National Information Services added 9.7% as buyout groups weighed bids for a majority stake in Worldpay, co-owned by the financial services firm, according to a Financial Times report.

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