U.S. stock futures dipped slightly on Monday as investors awaited comments from Fed Chair Jerome Powell that could influence future interest rate cuts. By 05:45 ET (09:45 GMT), the Dow Futures were down by 28 points, or 0.1%, while S&P 500 Futures fell 5 points, also 0.1%. Nasdaq 100 Futures dropped 25 points, reflecting similar downward pressure.
Despite the dip, September is on track to be a positive month for the markets. The Federal Reserve’s decision to cut interest rates by 50 basis points has buoyed market sentiment, even though September is typically known as one of the weakest months for stocks. The Dow Jones Industrial Average has risen by 1.8% month-to-date, reaching record highs, while the S&P 500 and Nasdaq have gained 1.6% and 2.3%, respectively.
Investors remain optimistic as they expect further cuts at the next Fed meeting, driven by easing inflation pressures and a slowdown in labor demand. Traders are closely monitoring Powell’s remarks at the National Association for Business Economics annual meeting for insights into the economic outlook.
The week will also culminate in the October nonfarm payrolls report, with economists predicting an addition of 144,000 jobs. Market participants are eager to determine whether this data supports a soft landing for the economy or raises concerns about a potential recession.
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