December S&P 500 E-Mini futures are up +0.48%, pointing to a higher open on Wall Street. Congressional leaders meet with President Trump to prevent a government shutdown. Investors await remarks from Federal Reserve officials and the nonfarm payrolls report.
Wall Street’s major equity averages ended in the green on Friday. Electronic Arts surged over +14% after reports of going private. Chip stocks rallied as the Trump administration considers requiring U.S. firms to manufacture chips domestically. Paccar advanced over +5% after a tariff announcement.
U.S. Department of Commerce data showed inflation in line with expectations. Personal spending and income rose more than expected in August. University of Michigan’s consumer sentiment index unexpectedly revised lower. Investors find relief in stable inflation, expecting two more Fed rate cuts this year.
Fed officials express limited risk of deterioration in unemployment and inflation targets. Richmond Fed President remains cautious, calling for proactive measures. Cleveland Fed President stresses the need for a restrictive monetary policy stance.
U.S. rate futures indicate an 89.3% chance of a 25 basis point rate cut in October. Analysts anticipate a “soft” September Nonfarm Payrolls report. Key economic data releases include JOLTs Job Openings, ADP Nonfarm Employment Change, and more. Fed officials are scheduled to speak this week.
Notable companies like Nike, Carnival, Paychex, and ConAgra Brands will release quarterly results this week. Pending Home Sales data is set to be released today. The yield on the 10-year U.S. Treasury note is at 4.143%, down -1.05%.
Euro Stoxx 50 Index is up +0.34%, with healthcare and mining stocks outperforming. Investors remain cautious due to worries over the approaching U.S. government shutdown. Bank stocks lost ground as Spain’s annual inflation rate accelerated, likely leading the European Central Bank to hold off on interest rate cuts. Eurozone businesses grew less pessimistic after a U.S.-EU agreement eased tariff uncertainty. GSK Plc stock rose +2% after CEO Emma Walmsley announced her departure.
Spain’s CPI fell -0.4% m/m and rose +2.9% y/y in September, below expectations. Eurozone’s Business and Consumer Survey beat expectations with a 95.5 reading. Eurozone’s Consumer Confidence stood at -14.9, meeting forecasts.
China’s Shanghai Composite Index rose on signs of policy effectiveness in tackling overcapacity and deflation. Industrial profits climbed 20.4% in August, first increase in four months. Miniso stock gained +1% after announcing plans to spin off its pop-culture collectibles division.
Japan’s Nikkei 225 Stock Index closed lower due to ex-dividend stocks. Investors selling to secure profits post-dividend. Stronger yen and expectations of a BOJ rate hike weighed on the index. July Leading Index was revised upward.
U.S.-listed cannabis-related companies soared in pre-market trading after President Trump shared a video on hemp-derived cannabidiol benefits. Merus N.V. jumped +38% after Genmab acquisition news. Lam Research rose +2% after Deutsche Bank upgrade.
General Dynamics advanced +1% in pre-market trading after Seaport Research upgrade. Today’s U.S. earnings spotlight includes Carnival Corp, Jefferies Financial, Vail Resorts, Progress, IDT, and Repositrak. 1. The stock market saw a sharp decline today, with the Dow Jones Industrial Average dropping 500 points due to concerns over rising inflation and interest rates.
2. A new study has found that the COVID-19 vaccine is effective in preventing severe illness and hospitalization from the Delta variant, providing much-needed reassurance to the public.
3. The United Nations has declared a famine in Ethiopia’s Tigray region, warning that millions of people are at risk of starvation due to ongoing conflict and food shortages.
4. Tesla announced plans to build a new factory in Texas, which will create thousands of jobs and boost the local economy. The electric car company aims to increase production capacity to meet growing demand.
5. The US government has approved a $1 trillion infrastructure bill, with funding allocated for roads, bridges, and broadband expansion. The bill is expected to create millions of jobs and improve the country’s infrastructure.
Read more at Yahoo Finance: Stocks Set to Open Higher as Bond Yields Fall, Trump’s Shutdown Talks in Focus