U.S. stock futures were trading slightly lower on Tuesday morning, following a record-setting close for the S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) at the end of September. Futures on the S&P 500, the Dow Jones, and the Nasdaq 100 (NDX) were down by about 0.18%, 0.23%, and 0.17%, respectively, at 3:24 a.m. EST, October 1.
September, typically a challenging month for the stock market, defied expectations this year, with all three major indexes closing higher. It is worth highlighting that this marks five consecutive months of gains for the Dow Jones and S&P 500, and two consecutive months for the Nasdaq Composite. This strong performance was fueled by the Federal Reserve’s interest rate cuts and positive economic reports, including inflation data.
Furthermore, Fed Chair Jerome Powell’s speech at the National Association for Business Economics yesterday reaffirmed the central bank’s plans to cut interest rates by another quarter percentage point at its next meeting. This helped boost investor sentiment.
In major stock market action, CVS Health (CVS) stock gained 2.4% on reports that the hedge fund Glenview Capital is planning to meet the company’s leadership to discuss operational improvement strategies. However, Stellantis (STLA) shares plummeted 12.5% after the carmaker reduced its 2024 profit outlook, citing softer global demand and intensifying competition in China.
Investors are now eagerly awaiting a key economic report today, the Manufacturing Purchasing Managers’ Index (PMI) for September. This report offers a snapshot of the U.S. manufacturing industry’s health, providing valuable insights into the broader economic conditions.
Moving to major corporate earnings releases today, Nike (NKE), Lamb Weston (LW), and Cal-Maine Foods (CALM) are scheduled to report their quarterly numbers.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 3.775%. At the same time, WTI crude oil futures trended lower, hovering near $68.06 per barrel as of the last check.
Elsewhere, European markets opened higher today as investors looked forward to preliminary inflation data from the Eurozone for September.
Japanese Markets Traded Higher on Tuesday
Japan’s Nikkei 225 and Topix indices finished higher by 1.93% and 1.69%, respectively, on Tuesday. The upside can be attributed to better-than-expected Japan’s unemployment report and Powell’s indications of further interest rate cuts in the U.S.
Investors should note that the Hong Kong and mainland Chinese markets were closed today for the National Day holiday. Moreover, China’s stock market will remain closed for the entire week due to the Golden Week holiday.
Interested in more economic insights? Tune in to our LIVE webinar.
