Stock Futures are combined Monday night as the market looks to keep momentum in the holiday-shortened week.
Futures related to the Dow Jones Industrial Average lost 0.11%, or 37 points. S&P 500 futures were down by 0.05%, or 2.25 points, while Nasdaq futures increased by 0.04%, or 6.25 points.
The developments come after a positive week for Wall Street, during which the Dow and the Nasdaq registered their highest results since July. The 30-stock Dow and the Nasdaq added 1.4% and around 3.3% for the week. The S&P 500 gained 2.5%, marking its best week since June.
Last week, traders were measuring news signs of an economic slowdown and relieving pricing pressures. The recent US nonfarm payrolls report revealed the unemployment rate reached as high as 3.8% in August, hitting its highest level in over a year. Economists had hoped that it would stay at 3.5%. Additionally, average hourly earnings rose 4.3% year over year, which was less than the 4.4% growth predicted by economists surveyed by Dow Jones.
“That [report] raises the critical short-term question for investors, can the labor market slow sufficiently, while inflation also decelerates, allowing the Federal Reserve to halt its policy rate hiking and keep rates stable for a while? It does appear as if slack in the labor force is growing,” said Rick Rieder, chief investment officer of global fixed income at BlackRock.
Investors can also anticipate a difficult month for stocks in the upcoming month. In order to prepare for the Fed’s September meeting, investors will be going through economic data, such as the latest inflation data, since September is traditionally the weakest month for equities.
A two-day meeting will be held for Central bank policymakers starting September 19 and revealing their interest rate decision on September 20.
Still, few technical indicators gave investors confidence last week. The major indices this past week crossed above their respective 50-day moving averages, indicating good short-term momentum.
“Investors are feeling more optimistic because we’re back in an ascent mode and upward trend,” Sam Stovall, chief investment strategist at CFRA, said to CNBC last week. He added, “At least in the near term, I think that the U.S. equity markets could continue to climb even in the face of a relatively challenging month.”