U.S. stock futures opened the week steady, as attention shifts to Federal Reserve Chair Jerome Powell’s speech and the upcoming nonfarm payrolls report set to be released later this week. In a separate development, California’s governor vetoed a controversial bill that aimed to impose new regulations on AI companies in the state.
U.S. stock futures remained stable as investors awaited Powell’s address, along with an important report on job data. The Dow Jones futures dropped by 30 points, or 0.1%, while the S&P 500 and Nasdaq 100 futures remained largely unchanged.
The Dow Jones Industrial Average had closed the previous session at a new record high, supported by a Commerce Department report indicating a slowdown in inflationary pressures and a moderate increase in consumer spending. These figures strengthened expectations that the Federal Reserve may proceed with another 50 basis point interest rate cut, according to market forecasts.
Investors are now looking forward to the nonfarm payrolls report due at the end of the week, which could provide key insights into the health of the U.S. labor market. Projections suggest that the U.S. economy added 144,000 jobs in September, a slight increase from the previous month, with the unemployment rate expected to remain steady at 4.2%.
In August, payroll data showed a less-than-expected increase, with only 89,000 jobs added, prompting Federal Reserve officials to revise their outlook and announce a significant interest rate cut. Analysts note that the labor market remains the primary driver of future rate cuts, and any signs of weakness in this sector could increase calls for another 50 basis point reduction.
In another development, China’s manufacturing sector contracted in September, although at a slower rate than anticipated. The official Purchasing Managers’ Index (PMI) recorded 49.8 points, signaling a slowdown in economic activity, with the index remaining below the 50-point threshold that separates growth from contraction. This deceleration comes as the Chinese government struggles to meet its annual growth target of 5%.
China has introduced a new package of stimulus measures aimed at supporting the sluggish economy, which may provide short-term relief to economic activity.
Meanwhile, oil prices rose on Monday, driven by escalating tensions in the Middle East. Brent crude futures increased by 0.9% to reach $72.20 per barrel, while West Texas Intermediate (WTI) crude climbed 0.8% to $68.71 per barrel.
These moves come amid growing concerns about the potential impact of regional conflicts on oil supplies, which could put pressure on global markets in the coming weeks.
