As the markets digest the August payrolls report and anticipate a Federal Reserve interest rate cut, investors are closely monitoring the latest developments.
Last week saw a 1.7% decline in the index, marking its worst performance since March 2023. Asian markets also experienced early losses on Monday, reflecting the global sentiment.
The Federal Reserve is expected to announce a rate cut on Sept. 18, with 112 basis points of cuts priced in by year-end. However, uncertainties remain regarding the size and timing of the rate cut.
With the European Central Bank likely to cut rates on Thursday and Apple’s new iPhone release, this week promises to be eventful for the financial markets.
Concerns about inflation persist, with deflationary pressures from China and falling oil prices weighing on market sentiment. Inflation expectations in the U.S. are declining, raising the possibility of a significant undershoot of the Fed’s 2% target.
The upcoming U.S. election debate between Kamala Harris and Donald Trump adds another layer of uncertainty for investors. Polls show the candidates in a dead heat, underscoring the importance of political developments on market dynamics.
In company news, Apple’s new iPhone series launch and Boeing’s labor deal will be closely watched for their impact on stock prices.
Key economic indicators to watch today include the New York Fed’s inflation expectations survey, U.S. employment trends, and corporate earnings reports from Oracle.
Stay informed on the latest market trends and make well-informed investment decisions in this dynamic economic environment.
(By Mike Dolan, editing by Emelia Sithole-Matarise; mike.dolan@thomsonreuters.com)