Inventory futures are flat in in a single day buying and selling after Dow’s 260-point loss
Andrew Kelly | Reuters
Futures on the Dow dipped simply 15 factors. S&P 500 futures and Nasdaq 100 futures had been each little modified.
The S&P 500 fell 0.3% on Tuesday in comparatively skinny buying and selling following the Labor Day weekend. The blue-chip Dow dropped 260 factors, weighed down by 3M and Honeywell, whereas the tech-heavy Nasdaq Composite rose lower than 0.1% to eke out a report shut.
Many traders are bracing for extra volatility in September, one of many seasonally weakest months of the yr. Worth swings may make a comeback, particularly with the S&P 500 up about 20% this yr with out a single 5% pullback.
“We see a bumpy September-October as the ultimate levels of a mid-cycle transition play out,” Morgan Stanley chief cross-asset strategist Andrew Sheets mentioned in a notice. “The following two months carry an outsized danger to development, coverage and the legislative agenda.”
On Wednesday, the Labor Division will launch its carefully watched Job Openings and Labor Turnover Survey. In the meantime, the Federal Reserve is about to publish its periodic “Beige E-book” survey of exercise throughout its 12 districts.
One of many catalysts for a sell-off might be the Federal Reserve and the potential for it to drag again an unprecedented financial stimulus to help the economic system all through the pandemic. Fed Chairman Jerome Powell has indicated that the central financial institution is more likely to start withdrawing a few of its easy-money insurance policies earlier than year-end, although he nonetheless sees rate of interest hikes within the distance.
Nonetheless, the outlook for the liftoff is clouded by the coronavirus variant and the newest jobs report, which confirmed a giant disappointment.
“Shares have posted a lot stronger than common positive aspects, with a lot shallower than common pullbacks,” Keith Lerner, chief market strategist at Truist, mentioned in a notice. “It might be completely regular to see not less than one intestine examine earlier than yr finish.”