As the final trading day of September approaches, US stock futures are poised for a strong monthly and quarterly performance, despite a slight dip on Monday. The Dow Jones Industrial Average futures edged 0.1% lower, following a record-breaking week, while S&P 500 and Nasdaq 100 futures slipped 0.2% and 0.3%, respectively. Despite this minor setback, the Wall Street indexes are still on track for a monthly gain, defying the historical trend of September being the worst month for stocks.
The Federal Reserve’s recent interest-rate cut and signs of economic resilience have boosted investor confidence, leading to three consecutive weekly gains. However, all eyes are now on the upcoming September jobs report, scheduled for release on Friday, which will serve as a crucial test for the ongoing rally. The key question is how rapidly the labor market is slowing, and whether the Fed’s actions are sufficient to support a healthy economy or merely a struggling one.
Federal Reserve Chairman Jerome Powell’s comments on Monday afternoon may provide insight into the economic outlook and help settle this debate. Meanwhile, a slew of profit warnings from automakers, including Stellantis, General Motors, and Ford, has cast a shadow over the market, with shares tumbling 13%, 3%, and 3%, respectively.
In contrast, China’s benchmark stock index has surged, entering a bull market, as investors anticipate a boost from Beijing’s stimulus measures. Japan’s Nikkei 225, however, has declined following Shigeru Ishiba’s surprise victory as likely future leader, which has wrongfooted investors.
Oil prices have fluctuated in response to Israel’s escalated attacks in Lebanon, while traders weigh the potential impact of China’s economic stimulus. Additionally, California Governor Gavin Newsom’s veto of the US’s first AI regulation bill has been seen as a win for Big Tech.
In other news, Satellite TV provider DirecTV has announced its acquisition of rival Dish Network, including its streaming brand Sling TV, through a debt exchange transaction. The deal, pending regulatory approval, is expected to create one of the largest pay-TV providers in the US.
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