Traders work on the floor of the New York Stock Exchange during afternoon trading on September 5, 2024 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures rose Monday morning after a tough week for stock markets.
S&P 500 Futures Increased by 0.37% Nasdaq 100 Futures It rose 0.53%. Futures linked to the Dow Jones Industrial Average It increased by 117 points (0.29%).
The stock market suffered severe losses at the start of the first trading week of September, a seasonally weak period for stocks. S&P 500 It fell 4.3%, its worst week since March 2023. Nasdaq Composite Index It fell 5.8% in its worst weekly performance since 2022, out of 30 stocks. Dow It fell 2.9%.
The declines came after the August jobs report stoked concerns about a slowing labor market. Economic data released Friday showed nonfarm payrolls rose by just 142,000, short of the 161,000 increase expected by economists surveyed by Dow Jones. Meanwhile, the unemployment rate fell to 4.2%, in line with economists’ expectations.
This week, investors will be keeping an eye on two important inflation reports that could further influence decisions at the Federal Reserve’s next Open Market Committee meeting. The August Consumer Price Report and Producer Price Report are due to be released on Wednesday and Thursday morning, respectively.
The market is currently pricing in a 71% chance of a 25-basis-point cut at the Fed’s next meeting, and just a 29% chance of a 50-basis-point cut, according to CME Group’s FedWatch tool.But Vincent Drouard, director of global macro strategy at StoneX, doesn’t think even weaker-than-expected consumer and producer price data would be enough to spur a big rate cut.
“The CPI is going to be in line with the consensus, but that doesn’t change anything. The producer price index isn’t that important,” he said in an interview with CNBC. “Powell certainly wants to cut rates, but he’s a rational guy. 50 basis points in September… why take the risk?”
