Good morning traders!
The S&P 500 ($SPY) is trading slightly below Friday’s close. Let’s get into it…
Stock futures decline this morning as the week begins after a long holiday weekend. Last week, traders considered new data indicating a slowing economy and reduced pricing pressures. The U.S. unemployment rate for August was reported at 3.8%, its highest in over a year, surpassing the expected 3.5%. Additionally, average hourly earnings grew by 4.3% year-over-year, slightly below the anticipated 4.4%.
Despite the recent positive performance of major stock indices, concerns arose from data revealing China’s services activity hitting an eight-month low in August. This raised global demand concerns due to China’s significant economic role. However, Goldman Sachs analysts reduced their predictions for a US recession, citing controlled inflation and a robust labor market. They also downplayed the potential negative impact of the Federal Reserve’s interest rate hikes.
The upcoming week will likely focus on the Federal Reserve’s decisions. Historically, September has been a challenging month for the markets, but some analysts remain optimistic due to factors like advancements in AI, available investment capital, and anticipated Apple product launches
Tuesday Economic Events:
Factory Orders 10:00am ET
Investor Movement Index 12:30pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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