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U.S. equity futures bounced higher Monday as investors looked to claw back losses from an early September selloff on Wall Street while looking to a key inflation reading later in the week.
Stocks closed our their worst week in more than a year Friday following a weaker-than-expected August jobs report that stoked concerns of cooling growth and recession risks heading into the final months of the year.
The selling was compounded by action in the bond market that lifted 10-year notes yields past 2-year yields for the first time in more than 2 years, a move could suggest traders are growing increasingly concerned with the health of the U.S. economy.
Benchmark 2-year notes were last marked at 3.708%, with 10-year paper trading at 3.761%.
Apple will host its iPhone 15 launch event later today in Cupertino, California.
Image Source: Apple
The S&P 500 ended the first week of the month with a 4.25% decline, while the tech-focused Nasdaq fell 5.77% thanks to notable pullbacks in Magnificent 7 stocks such as Nvidia (NVDA) , Tesla (TSLA) and Meta Platforms (META) .
Stocks are looking to a firmer open to start the week, however, with Wednesday’s August inflation report in sharp focus now that bets on an outsized Federal Reserve rate hike faded following Friday’s jobs report, which showed a jump in monthly and annual wage gains.
The CME Group’s FedWatch pegs the odds of a 50 basis point reduction at just 21%, but expects at least a full percentage point of rate cuts between now and the end of the year.
Heading into the start of the trading day on Wall Street, futures tied to the S&P 500 suggest a 38 point opening bell gain, while those linked to the Dow Jones Industrial Average are priced for a 232 point advance.
The tech-focused Nasdaq is called 158points higher, paced by early gains for Nvidia, Tesla and Apple (AAPL) , which hosts its iPhone launch event later today.
Other stocks on the move include Palantir Technologies (PLTR) , which jumped 7.15% in premarket following Friday’s move by S&P Global Indices to include the tech group in the S&P 500 as of Sept. 23.
Palantir will replace American Airlines (AAL) , with Dell Technologies (DELL) and Erie Indemnity (ERIE) joining the benchmark and Etsy (ETSY) and Bio-Rad Labs (BIO) exiting.
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In overseas markets, Europe’s Stoxx 600 was marked 0.82% higher in early Frankfurt trading ahead of this week’s European Central Bank rate decision, slated for Thursday, while Britain’s FTSE 100 gained 0.73% in London.
Overnight in Asia, the Nikkei 225 closed 0.48% lower in Tokyo while a muted set of inflation data in China kept a lid on the regional MSCI ex-Japan index, which fell 1.19% into the close of trading.
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