Investing.com –
Futures for the S&P 500 and Nasdaq 100 climbed on Monday, while Dow futures were slightly lower as traders prepare for a week filled with potentially market-moving events. The US presidential election is just a day away, with both candidates virtually tied as they make their closing arguments in crucial battleground states. Additionally, corporate earnings are expected this week, and the Federal Reserve will announce its latest policy decision on Thursday.
1. Futures Mixed
US stock futures hovered around the flatline on Monday as investors anticipated an event-filled week that includes the US presidential election, a variety of corporate earnings, and a significant Federal Reserve interest rate decision.
As of 03:30 ET (08:30 GMT), the Dow futures contract had lost 30 points (0.1%), S&P 500 futures rose by 10 points (0.2%), and Nasdaq 100 futures gained 40 points (0.2%). The previous week, major averages on Wall Street closed positively, with solid quarterly results from Amazon helping offset a sharp decline in US job growth in October. Although the economy added only 12,000 jobs last month, well below expectations, markets seemed to dismiss the weak report in light of recent devastating hurricanes and ongoing labor strikes.
2. US Election One Day Away
Attention shifts to the critical US presidential election taking place on Tuesday, where the race between Republican candidate Donald Trump and Democratic candidate Kamala Harris is extremely close. Over the weekend, both candidates campaigned vigorously in key battleground states that could sway the election's outcome. A recent survey in Iowa shows Harris leading Trump by three percentage points, mainly due to support from women. Still, the contest appears almost tied, with polls showing Harris leading in several swing states but Trump holding an edge in Arizona.
3. Earnings This Week
Around one-fifth of S&P 500 companies are set to announce their quarterly earnings this week. So far, 70% of the S&P 500 has reported earnings, with about 75% surpassing estimates — slightly below the 5-year average but equal to the 10-year average. Key earnings reports this week will include Super Micro Computer, which recently faced a drop in share price due to its auditor's resignation, and other firms like Qualcomm, Moderna, and CVS Health.
4. Fed Decision Looms
The Federal Reserve is expected to enact a 25-basis point interest rate cut at the conclusion of its two-day policy meeting on Thursday. The expectations for a smaller cut solidified following Friday's nonfarm payrolls report, which indicated a cooling labor market. Investors are looking for insights from the Fed’s statement and comments from Chair Jerome Powell regarding the economic outlook and potential future rate cuts. Analysts believe Powell may not provide concrete future rate-cut strategies but will emphasize a data-dependent approach.
5. Crude Rises
Oil prices increased on Monday after OPEC+ decided to delay a planned output hike due to weak demand pressures on prices. As of 03:30 ET, Brent crude climbed by 2.1% to $74.60 per barrel, while U.S. crude futures rose by 2.3% to $71.06. OPEC+ mentioned extending a cut of 2.2 million barrels per day, reflecting concerns over global demand, following the previous week's decline of over 3% in both contracts due to record U.S. production.
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