The Ultimate Financial Market Analysis: What You Need to Know for Your Investments
Wall Street’s impressive performance in 2024 continues as the final quarter begins, following another record close on Monday. The Federal Reserve’s measured guidance, along with quarter-end effects, are influencing market sentiment.
Fed Chair Jerome Powell’s comments tempered expectations of aggressive rate cuts, indicating a base case of two more quarter-point cuts by year-end. This led to a slight pullback in rate futures prices, with two-year Treasury yields briefly rising above 3.7%.
Quarter-end effects have added volatility to global markets, seen in the sharp movements in Shanghai and Tokyo. The S&P500 closed at a new record high on Monday after a late surge.
Focus now turns to key U.S. labor market data releases scheduled for this week, starting with the August JOLTS job openings report and ISM manufacturing report. Additionally, a major labor strike at U.S. ports and the aftermath of Hurricane Helene pose economic challenges.
Political events, such as the U.S. vice presidential debate and speculation about ECB rate cuts, are also shaping market sentiment. Euro zone inflation concerns have weighed on the euro/dollar exchange rate.
Amidst this backdrop, U.S. stock futures are steady to higher, with the market awaiting key data releases and corporate earnings updates. Both growth and defensive sectors are performing well, with the equal-weighted S&P500 index also hitting a record high.
Key developments to watch include US manufacturing surveys, job openings data, corporate earnings from companies like Nike and United Natural Foods, and speeches by central bank officials.
Stay informed to make informed investment decisions in these dynamic markets.
