The U.S. stock index futures rose, potentially reversing the broader market’s second consecutive week of declines

Market Analysis 01 Oct 2021

The U.S. stock index futures rose, potentially reversing the broader market’s second consecutive week of declines.

Major indices saw significant declines on Wednesday, with the Nasdaq declining by 1.7%, the S&P down 0.9%, and the Dow falling 0.8%. The Nasdaq is on track for a third consecutive weekly loss, with a total weekly loss of about 3%, while the S&P is down 2% for the week, and the Dow is heading for a 1% weekly loss.

However, unlike the losing sessions on Wednesday and Thursday, Wall Street will mostly close on Friday by regaining some ground. In the previous session, the U.S. third-quarter earnings report caused a sharp decline in most Wall Street indices, particularly tech stocks.

Today, the stock market gained some ground due to increasing hopes for the Q3 earnings report. Amazon delivered a better-than-expected earnings report, and inflation came in as expected.

As for the recent inflation report, the Bureau of Statistics released the CPI report in the form of personal consumption expenditure indexes. The U.S. core personal product price remained stable at 3.4% in October. Equaling both the market explanation and the previous percentage of 3.4%.

Along with mind-blowing growth product indexes, the U.S. economy is heading towards a soft landing scenario despite market and analysis concerns.

Based on the recent economic data The likelihood of a rate hike at the November Fed meeting is currently at 0%, and for the December Fed meeting, it stands at 75.5% of no rate hike, as per Fed Fund futures.

Moving to the corporation Q3 earnings report, Amazon (AMZN) provided a boost to market sentiment with its quarterly profits nearly tripling to nearly $10 billion, leading to a 5.3% after-hours rise in AMZN shares to $126. The company’s cost-cutting measures and robust sales performance alleviated concerns. CEO Andy Jassy also highlighted the substantial revenue potential of generative AI, estimated to be worth tens of billions of dollars.

Meanwhile, stock index futures rose, potentially reversing the broader market’s second consecutive week of declines. The S&P 500 benchmark climbed slightly by 0.21% to 4.146 bps. The Nasdaq composite skyrocketed by 1.17%, which helped wipe out last-session losses. While the Dow Jones average industry was down by 0.38% to 32.652 bps,

On the political front, many analysts believe that the Biden administration will risk the current U.S. economy if the U.S. enters a direct conflict with Iran and with its current position of supporting the Israeli occupation. The Middle East crisis might evolve into a regional crisis, a crisis that will evolve other powers from both parties. Which will affect the economy, society, and the world as a whole.

On the other hand, Iran was directed by saying that if the U.S. military interferes in the conflict in Lebanon, Iran will not hesitate to respond. Between the ongoing events, the market volatility level will increase if the crisis extends to other countries, including Lebanon, Jordan, and Egypt.

On the broader market, in Asia, Japan rose by 1.4%. Hong Kong increased by 2.1%. China was up by 1%. India saw a 1% gain.

In Europe, at midday, London is up 0.3%. Paris is down 0.6%. Frankfurt is up 0.4%.

Written by Editor

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