Overnight trading showcases mixed sentiment as Treasury Secretary Bessent's statements garner attention. Bessent suggests potential for a sub-4% deficit-to-GDP ratio by the end of the Trump administration and expresses optimism for 3% GDP growth this year, although he hesitates on progress toward the deficit this year. The uncertainty contributes to a net P&L of $-664.26 from 14 trades, while our algorithms log a win rate of 78.6% on both ES and MES contracts.

Market participants keep a close watch on Bessent’s insights regarding the economic environment, especially as the upcoming Core PCE Price Index and Final GDP figures loom on the horizon. Today’s prevailing AI sentiment reads negative, aligning with a high_vol regime filter at 100% confidence, indicating traders should be prepared for heightened volatility as economic indicators draw closer. The revision of May building permits to -0.9% also raises questions about real estate activity, serving as a further factor in shaping trader expectations.

As the session opens, our current positions include long and short contracts in the ES market with varying unrealized gains and losses. The algos are poised to monitor the impact of any new data or comments from Bessent while analyzing trading sentiment, with particular focus on the anticipated core PCE and GDP numbers expected tomorrow.