Last Updated: 4:01 PM EST
Stock indices finished today’s trading session in the green. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.3%, 1.16%, and 1.2%, respectively. The technology sector (XLK) was the session’s leader, while the communication sector (XLC) was the laggard.
Furthermore, the U.S. 10-Year Treasury yield was little changed at 3.7%, as the yield curve remains normal with the Two-Year Treasury yield at 3.68%.
In addition, the Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2.5% in the third quarter.
This is higher than its previous estimate of 2.1%, which can be attributed to recent releases from the U.S. Census Bureau, the Institute for Supply Management, the U.S. Bureau of Labor Statistics, and the U.S. Bureau of Economic Analysis.
First Published: 5:00 AM EST
U.S. futures traded higher on Monday morning, signaling a potential rebound after a challenging week for the equity market. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.83%, 0.6%, and 0.45%, respectively, at 4:22 a.m. EST, September 9.
In the previous week, all three major indices witnessed significant losses. The S&P 500 was down 4.3%, marking its worst performance since March 2023. Additionally, the Nasdaq Composite and the Dow Jones fell 5.8% and 2.9%, respectively. These declines were primarily driven by concerns about a slowing labor market, as reflected by the weaker-than-expected U.S. jobs report released on Friday.
Investors are looking forward to two key inflation reports, the Consumer Price Index (CPI) and Producer Price Index (PPI), scheduled for release on Wednesday and Thursday, respectively. These reports will provide insights into inflationary pressures and influence the Federal Reserve’s decision on interest rates at its upcoming meeting.
It is worth highlighting that the market has already priced in a 71% probability of a 25 basis points rate cut at the Fed’s next meeting, according to the CME Group FedWatch Tool.
On the earnings front, GameStop (GME), Dave & Buster’s Entertainment (PLAY), Adobe (ADBE), Manchester United (MANU), and Kroger (KR) will announce results this week. Importantly, Oracle (ORCL) is scheduled to release its quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 3.749% at the time of writing. Also, the WTI crude oil futures are trending higher, hovering near $68.53 per barrel as of the last check.
Elsewhere, European markets opened higher on Monday as investors looked forward to the European Central Bank’s (ECB) monetary policy decision scheduled for Thursday.
Asia Pacific Markets Traded Lower on Monday
Asia-Pacific markets traded in the red today due to renewed U.S. economy’s health concerns following the recent weak jobs report. Also, traders evaluated weaker-than-expected GDP and inflation reports from Japan and China, respectively.
Hong Kong’s Hang Seng index was down 1.6%. Moreover, China’s Shanghai Composite and Shenzhen Component indices declined 1.06% and 0.83%, respectively. Also, Japan’s Nikkei and Topix indices dropped 0.48% and 0.68%, respectively.
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