(RTTNews) – Stocks may move to the upside in early trading on Monday, regaining ground after ending the previous session well off their worst levels but still mostly lower. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.
Optimism about the outlook for interest rates may contribute to initial strength on Wall Street following last Friday’s weaker-than-expected U.S. employment data.
Following the release of a closely watched report showing employment increased by much less than expected in the month of August, CME Group’s FedWatch Tool is currently indicating a 90.1 percent chance the Fed will lower rates by a quarter point later this month.
Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of inflation data that could impact the outlook for rates.
The Labor Department is scheduled to release reports on producer price inflation and consumer price inflation on Wednesday and Thursday, respectively.
Economists currently expect the annual rate of producer price growth in August to come in unchanged from July at 3.3 percent.
The annual rate of growth by consumer prices is expected to accelerate to 2. 9 percent in August from 2.7 percent in July, while the annual rate of growth by core consumer prices, which exclude food and energy prices, is expected to hold at 3.1 percent.
After failing to sustain an initial move to the upside, stocks came under pressure in early trading on Friday. The major averages pulled back into negative after reaching new record intraday highs.
The major averages climbed well off their worst levels as the day progressed but still closed in negative territory. The Dow slid 220.43 points or 0.5 percent to 45,400.86, the S&P 500 fell 20.58 points or 0.3 percent to 6,481.50 and the Nasdaq edged down 7.31 points or less than a tenth of a percent to 21,700.39.
For the week, the major averages turned in a mixed performance. The tech-heavy Nasdaq jumped by 1.1 percent and the S&P 500 rose by 0.3 percent, but the narrower Dow dipped by 0.3 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index shot up by 1.5 percent, while China’s Shanghai Composite Index climbed by 0.4 percent.
The major European markets have also moved to the upside on the day. While the French CAC 40 Index is up by 0.5 percent, the German DAX Index is up by 0.4 percent and the U.K.’s FTSE 100 Index is up by 0.2 percent.
In commodities trading, crude oil futures are jumping $1.25 to $63.12 a barrel after tumbling $1.61 to $61.87 a barrel last Friday. Meanwhile, after surging $46.60 to $3,653.30 an ounce in the previous session, gold futures are inching up $4.30 to $3,657.60 an ounce.
On the currency front, the U.S. dollar is trading at 147.73 yen versus the 147.43 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1734 compared to last Friday’s $1.1717.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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