The major U.S. index futures are pointing to a modestly lower open on Monday, as traders digest the potential escalation of the Russia-Ukraine War and look ahead to the unfolding earnings season.
The major U.S. averages advanced in the week ended Oct. 7 despite the weakness seen in the later part of the week ended Oct. 7. The positive performance came about due to the strong rally seen on Monday and Tuesday amid expectations that the Fed would temper its hawkish tone. Sentiment faltered through the remainder of the week, with the weakness intensifying on Friday due to a strong job market report and a negative preannouncement issued by Advanced Micro Devices, Inc. AMD.
After a dismal third-quarter performance, the market could see some redemption in the final quarter of the year.
“The third-quarter pullback reflected the real changes in policy and risk. Looking forward, while those risks remain, most of them are likely incorporated into markets, meaning the further effect should be limited,” according to Brad McMillan, chief investment officer for Massachusetts-based Commonwealth Financial Network.
“Big picture, the third quarter was very difficult on many levels, and the September performance was especially bad. But, unless we see the fundamentals continue to deteriorate (and that is not what we are seeing), the fourth quarter may end up better,” he added.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | +0.73% | 10,652.40 | |
| S&P 500 Index | +1.5% | 3,639.66 | |
| Dow Industrials | +1.99% | 29,296.79 |
Here’s a peek into index futures trading:
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | -0.30% | |
| S&P 500 Futures | -0.16% | |
| Dow Futures | -0.09% | |
| R2K Futures | -0.06% |
In premarket trading on Monday, the SPDR S&P 500 ETF TrustSPY edged down 0.15% to $362.24, while Invesco QQQ Trust QQQ fell 0.37% to $268.10, according to Benzinga Pro data.
On the economic front, Chicago Federal Reserve President Charles Evans and Lael Brainard, vice chair of the Fed’s board of governors are scheduled to speak at the National Association for Business Economics conference at 9 a.m. EDT and 1 p.m. EDT, respectively.
See Also: 'Begin Preparing For A Recession': 8 Experts React To Jobs Report, Stock Market Sell-Off
Stocks In Focus:
- Tesla, Inc. TSLA stock was yet again under the pump in the premarket session, despite the company’s made-in-China sales rising to a record in September, according to data from China Passenger Car Association.
- Tech stocks, especially, chipmakers AMD and Nvidia Corporation NVDA extended their losses.
- PayPal Holdings, Inc. PYPL slid after an uproar over a proposed policy change to deduct $2,500 from customers’ accounts over misinformation forced the company to perform a U-turn.
- Commodity, Global Equity Markets:
WTI Crude oil futures, which rallied through last week and ended at $92.64 a barrel on Friday, were pulling back amid some profit-taking.
The Asian markets, which remained open for trading, closed Monday’s session notably lower, tracking the negative lead from Wall Street on Friday. The Japanese, Malaysian and South Korean markets remained closed for public holidays.
European stocks saw volatility in early trading amid Russia’s missile attacks on Kyiv and other Russian cities.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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