Market Update: Futures Point to Lower Opening Ahead of Key Inflation Data
The stock market sentiment has soured ahead of the key inflation data set to be released on Friday, with index futures pointing to a modestly lower opening. Despite this, a fairly benign data could keep the upward trajectory intact as investors look forward to next week’s crucial labor market data. Stocks are on track to finish September on a positive note, despite it being a seasonally weaker month, but election uncertainty looms over the market in the upcoming month. The focus is expected to shift to the third-quarter reporting season in the latter half of October.
In premarket trading on Friday, the SPDR S&P 500 ETF Trust edged up slightly to $572.46, while the Invesco QQQ ETF fell to $489.09, according to Benzinga Pro data.
On Thursday, U.S. stocks advanced as traders digested economic data, Chinese stimulus news, and Micron Technology, Inc.’s earnings. However, optimism towards tech stocks was tempered by news of a Department of Justice probe into Super Micro Computer, Inc. The major indices opened higher but later gave up some gains, closing the day in positive territory.
Analysts are anticipating higher volatility in both bonds and equities due to global uncertainty and a softer growth outlook. The S&P 500 is up about 17.2% for the month-to-date period, with the potential for gains in the fourth quarter if historical trends hold true.
Upcoming economic data includes reports on personal income and spending, the price consumption expenditure index, trade balance, consumer sentiment, and GDP growth. Stocks in focus include BlackBerry Limited, Costco Wholesale Corporation, and Bristol Myers Squibb Co.
In commodities, crude oil futures are weaker, gold futures retreated, and Bitcoin rallied over 3% in the past 24 hours. The yield on the 10-year Treasury note remained almost flat. Asian markets rose, with China’s optimism boosting sentiment, while European markets advanced in early trading.
Overall, investors are bracing for potential market fluctuations as key economic data and earnings reports shape the market outlook in the coming weeks.