The US stock market is poised to wrap up a remarkable quarter, with investors eagerly awaiting Federal Reserve Chairman Jerome Powell’s remarks on the economy. Despite a slight dip in futures on Monday, the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 are all on track to post significant monthly and quarterly gains. The market’s optimism stems from the Fed’s recent interest-rate cut and signs of resilience in the US economy, which have fueled a three-week winning streak.
However, investors are bracing for the highly anticipated September jobs report, set to be released on Friday. The report will provide crucial insight into the labor market’s trajectory, which could impact the Fed’s future policy decisions. Powell’s comments on Monday will be closely watched, as they may offer clues about the central bank’s stance on the economy.
Meanwhile, the automotive sector is facing headwinds, with Stellantis, General Motors, and Ford all experiencing significant declines in their share prices. The companies cited supply chain disruptions and weakness in China as contributing factors to their poor performance.
In contrast, China’s benchmark stock index surged to its highest level since 2008, entering a bull market ahead of a weeklong holiday. Investors are betting on a stimulus-fueled boost to the world’s second-largest economy, which has also lifted sentiment in the US market.
Elsewhere, Japan’s Nikkei 225 index plummeted following Shigeru Ishiba’s surprise victory as the country’s likely future leader, which wrongfooted investors who were expecting a more easing-friendly rival. Oil prices fluctuated in response to rising tensions in the Middle East, while California Governor Gavin Newsom’s veto of a bill aimed at regulating large-scale AI was seen as a win for Big Tech.
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