New York – US stock futures showed a mixed trend as the new quarter began, with investors eagerly anticipating new data on jobs and manufacturing for insights into potential interest rate cuts. Dow Jones Industrial Average futures saw a slight decline of 0.2%, while S&P 500 futures remained just below the flatline after achieving record closes. Nasdaq 100 contracts were relatively unchanged, setting the stage for a variable start to October and the fourth quarter.
Investors were closely watching the latest remarks from Federal Reserve chair, Jerome Powell, who indicated that while policymakers were not in a rush to lower rates, they aimed to maintain a stable economy. This stance led traders to scale back their expectations for a significant rate cut. The upcoming report on August job openings could potentially influence these expectations based on labor market performance. Additionally, updates on manufacturing activities from ISM and S&P Global were expected to offer further insights into the pace of economic slowdown in the US.
Amid a week filled with critical economic data releases, market participants were particularly focused on the forthcoming September jobs report due on Friday. The emphasis was on seeking confirmation that the US economy was experiencing a cooling trend rather than facing a severe downturn. However, a strike by dockworkers on the East and Gulf coasts raised concerns about potential disruptions to ocean shipping, which could have significant economic repercussions if prolonged. The strike had the potential to impact inflation rates, jeopardize job opportunities, and even influence political dynamics within the country.
Adding to investor unease were geopolitical tensions in the Middle East, including reports of Israeli troops entering Lebanon. These developments further fueled uncertainties in the market, contributing to a cautious sentiment among traders. As the new quarter kicked off, the focus remained on forthcoming economic data releases that could provide critical insights into the direction of the US economy and potential market trends in the weeks ahead.
