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U.S. stocks appear on track to start the new week on the back foot, with index futures modestly lower early Monday. As the S&P 500 trades slightly shy of its record high, traders may show reluctance to add to their positions, especially ahead of the week’s labor market data. Regional manufacturing activity data and speeches by Federal Reserve officials, including one from Chair Jerome Powell, could also have a bearing on the trading direction.

Sentiment may be marred by the looming strike by the International Longshoremen’s Association that is expected to stall activity in ports from New England to Texas, potentially crippling supply chains. In a note to clients, fund manager Louis Navellier said, “Even a two-week Longshoreman strike would disrupt holiday sales and supply chains for drugs and other essential products.”

Futures Performance (+/-) Nasdaq 100 -0.10% S&P 500 -0.05% Dow -0.08% R2K -0.53%

In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY eased 0.03% to $571.29 and the Invesco QQQ ETF QQQ fell 0.04% to $486.55, according to Benzinga Pro data.

Cues From Last Week:

U.S. stocks rose for a third straight week as traders bet on the continuation of the rally into the fourth quarter as the Fed delivers on its promise. The Chinese efforts to stimulate the economy set in motion buying in China-exposed stocks, while positive reaction to Micron Technology, Inc.’s MU earnings boosted the tech space.

The Dow Industrials finished the week at fresh intraday and closing highs, while the S&P 500 settled just shy of its all-time highs.

Index Weekly

Performance (+/) Value Nasdaq Composite +0.95% 18,119.59 S&P 500 Index +0.63% 5,738.17 Dow Industrials +0.59% 42,313.00 Russell 2000 -0.14% 2,224.70

Insights From Analysts:

The solid September gains bring both good and bad news for the market, according to Carson Group Chief Investment Strategist Ryan Detrick. The S&P 500 Index is close to clocking gains of 20% year-to-date heading into October for the first time since 1997, the strategist said. When this had happened in the past, the index was down seven of the nine times. Despite the October weakness, the fourth quarter returned 4.1% on average in these years, he added.

S&P 500 with a shot at being up 20% YTD heading into October for the first time since 1997.

That's the good news.

The bad news? Oct lower 7 of 9 times that's happened.

Still, Q4 with a solid median return of 4.1% when all is said and done says don't lose faith now. pic.twitter.com/rkD3uXVGGo — Ryan Detrick, CMT (@RyanDetrick) September 29, 2024 Tech bull Daniel Ives is very optimistic about the tech stocks continuing to shine. “We believe the stage is set for tech stocks to move 10%+ higher into year-end and another 20% in 2025 with this tech bull market just hitting its next phase led by the AI Revolution,” he said. The overall AI infrastructure market opportunity could grow ten times from presently through 2027, he said.

See Also: How To Trade Futures

Upcoming Economic Data:

A quartet of employment reports, including the non-farm payrolls data for September, ADP private payrolls data, the August Job Openings and Labor Turnover survey data and the weekly jobless claims, are among the key data releases for the week. Traders may also focus on a few private sector activity reports scheduled for the week.

On Monday Federal Reserve Governor Michelle Bowman is scheduled to speak at 8:50 a.m. EDT.

is scheduled to speak at 8:50 a.m. EDT. ISM-Chicago is due to release the results of its regional manufacturing survey at 9:45 a.m. EDT. The Chicago business barometer is expected to show a reading of 45.3 for September, down from 46.1 in August, suggesting a faster rate of contraction.

The Treasury will auction three- and six-month bills at 11:30 a.m. EDT.

Powell will address the National Association for Business Economics, in Nashville, Tennessee, at 1:55 p.m. EDT.

Stocks In Focus:

Carnival Corporation & plc CCL is scheduled to announce its quarterly results ahead of the market opening.

is scheduled to announce its quarterly results ahead of the market opening. Crypto-linked stocks pulled amid the softness seen in digital currencies. MicroStrategy, Inc. MSTR and Coinbase Global, Inc . COIN fell over 5.70% and 4.40%, respectively, in premarket trading.

Commodities, Bonds And Global Equity Markets:

Crude oil futures fell modestly and traded under $68, while gold futures, though trading off the record highs, are modestly higher. Bitcoin BTC/USD slipped over 3% over the past 24 hours and traded around $63.6K. The yield on the 10-year Treasury edged up slightly to 3.779%.

The major Asian markets closed on a mixed note, with the Japanese market plunging 4.80% as 67-year-old Shigeru Ishiba is all set to take over as prime minister after he was elected to lead the Liberal Democratic Party. Uncertainty over his fiscal and monetary policies led to the unraveling of bets, reports said. The Indian, South Korean, Taiwanese, Indonesian and New Zealand markets also advanced.

On the other hand, China’s key market gauge rallied over 8% after domestic private sector activity data came in weaker than expected, raising hopes of additional stimulus measures. The Hong Kong market also rallied strongly, while the Australian and Singaporean markets rose, although by a much more modest magnitude.

Sentiment across the Atlantic is negative, with most major markets in Europe trading firmly in the red in early trading.

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