Market sentiment remains cautiously optimistic as investors await Federal Reserve Chair Jerome Powell’s remarks and the highly anticipated September jobs report. Despite a slight dip, major indices are poised to close out the month and quarter on a strong note, buoyed by the Fed’s recent interest rate cut and signs of economic resilience. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all edged lower, but remain on track for significant monthly gains.
A slew of profit warnings from major automakers, including Stellantis, General Motors, and Ford, weighed on the market early Monday. Stellantis shares plummeted 13% after slashing its margin outlook, citing supply chain disruptions and weakness in China. Meanwhile, Aston Martin’s stock tumbled over 20% following an earnings warning.
In other news, Nvidia’s stock slipped 1% after a report revealed Beijing is urging Chinese companies to purchase from domestic chipmakers, rather than relying on Nvidia’s popular GPUs. Despite trade tensions, analysts remain bullish on Nvidia, with 90% recommending a buy and predicting shares will rise to $147.61 over the next year.
This week, investors will be closely watching labor market data, including the September jobs report, as well as updates on activity in the services and manufacturing sectors. A stronger-than-expected jobs report could be seen as a positive for stocks, while a disappointing report could have the opposite effect.
In M&A news, DirecTV has agreed to acquire rival Dish Network, including its streaming brand Sling TV, in a debt exchange transaction. The deal, subject to regulatory approval, would create one of the largest pay-TV providers in the US.
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