U.S. Stock Futures Rise as Traders Anticipate Data-Rich Week

Introduction

Stock-Index Futures Performance

• S&P 500 futures (ES00) rose by 17 points or 0.4% to reach 4479.
• Dow Jones Industrial Average futures (YM00) gained 75 points or 0.2% and reached 35009.
• Nasdaq 100 futures (NQ00) climbed 93 points or 0.5% to reach 15587.

Recap of Friday's Market Performance

On Friday, the Dow Jones Industrial Average (DJIA) rose by 76 points or 0.22%, closing at 34577. The S&P 500 (SPX) increased by 6 points or 0.14%, reaching 4457, while the Nasdaq Composite (COMP) gained 13 points or 0.09%, closing at 13762.

Understanding Recent Volatility

The recent volatility in the market can be attributed to various factors, with the relentless surge in oil prices being a primary catalyst. This surge has raised concerns about inflation precisely when major central banks were hoping to conclude or be in the final stages of their interest rate hikes. Stephen Innes, managing partner at SPI asset management, noted that bond yields briefly eased in late August but have since resumed their upward climb. Notably, 10-year Treasuries reached around the 4.3% mark midweek before slightly settling.

Looking Ahead to Data Releases

As traders cautiously analyze market conditions, the focus is now on key data releases scheduled for later in the week. These releases will provide important updates on both the health of the U.S. consumer and inflationary pressures in the economy. With oil prices remaining relatively unchanged on Monday and benchmark yields holding steady, traders are eagerly awaiting these updates to make informed decisions.

Stay tuned for more information as we closely monitor the market and the impact of the upcoming data releases.

US Consumer Price Index and Retail Sales Report to Impact Federal Reserve's Decision

The Federal Reserve is closely monitoring the upcoming release of the August U.S. consumer price index and retail sales report, as it considers whether to adjust interest rates at its policy meeting next week. The market expects the Fed to maintain borrowing costs within the current range of 5.25% to 5.50%.

According to Richard Hunter, head of markets at Interactive Investor, discussions surrounding interest rates continue to be a focal point for investors. The release of additional inflationary data this week could potentially influence the Fed's decision-making process.

Despite the ongoing uncertainty, Lee remains optimistic about equity markets. He predicts that after some continued volatility, the S&P 500 will rise to 4,750 or even higher by the end of the year.

In line with this positive sentiment, Nasdaq 100 futures are seeing a boost as shares of Tesla experience a nearly 6% surge. This increase comes as Morgan Stanley upgrades its rating on Tesla from equal-weight to overweight.