Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
U.S. stock futures lower this morning, after new economic growth indicators from China and anticipation of the Federal Reserve’s upcoming interest-rate decision. The uplift in market sentiment can be attributed to encouraging data from China, which has been a focal point for global investors due to its economic slowdown in recent times. This positive shift in China’s economic landscape has provided a much-needed boost to the global markets. On the domestic front, all eyes are on the Federal Reserve’s interest rate decision post the weekend. While the consensus is that the rates will remain unchanged this month, the November meeting’s outcome remains uncertain.
Analysts have expressed varied opinions on the market’s trajectory. Raffi Boyadjian from broker XM noted that despite potential rate hikes by the Fed, Wall Street is poised for a favorable weekly close. However, he also cautioned about potential market volatility. Key economic data releases, such as the industrial production and capacity utilization for August, the September Empire State manufacturing survey, and the University of Michigan’s consumer sentiment index for September, are eagerly awaited by investors. The overarching hope is for indicators that suggest controlled inflation and consistent economic growth, which would deter the Fed from implementing further rate hikes.
Adding to the market dynamics, traders are gearing up for a potentially volatile day, known as “triple witching”, where stock options, stock index futures, and stock index options all expire simultaneously. This event, occurring four times a year, typically results in high trading volumes and increased volatility. Experts like Jim Reid from Deutsche Bank have advised traders to be cautious of the massive volumes of derivative contracts set to expire.
Friday Economic Events:
Empire State Mfg Index 8:30am ET
Import and Export Prices 8:30am ET
Industrial Production 9:15am ET
Consumer Sentiment 10:00am ET
Inflation Expectations 10:00am ET
Baker Hughes Rig Count 1:00pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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