Wall Street kicked off the week on a cautious note, with major indexes trading relatively flat as investors grappled with uncertainty surrounding the economic and political landscape.
A key indicator of economic activity, the S&P Global’s private sector survey, revealed that output growth in September slightly exceeded expectations. This growth was primarily driven by a strengthening services sector. However, the report also signaled a reawakening of inflationary pressures, raising concerns about the Federal Reserve’s future monetary policy moves.
The political landscape also continues to be a source of market volatility. According to the latest betting odds from Polymarket, Vice President Kamala Harris is currently favored to win the 2024 U.S. Presidential election, surpassing former President Donald Trump.
Amidst this global uncertainty, investors sought refuge in safe-haven assets, leading to a surge in gold prices. The precious metal reached new all-time highs, indicating investor confidence in its ability to preserve wealth during times of economic turmoil.
Meanwhile, natural gas prices surged by over 4%, hitting a three-month high on Monday. This spike was attributed to the formation of a new storm in the Gulf of Mexico, which threatens to further disrupt supply chains already impacted by Hurricane Francine.
The geopolitical situation in the Middle East remains tense, with Israel targeting new Hezbollah sites in Lebanon. The U.S. has also deployed additional military troops to the region, further escalating the conflict. Despite this turmoil, oil prices declined by 2%, suggesting that supply fears may be easing for now.
In the cryptocurrency space, Bitcoin showed little movement, trading down by 0.5%.
Here’s a breakdown of major indices and their 1-day percentage changes:
* Nasdaq 100: 19,816.41 (+0.1%)
* S&P 500: 5,707.19 (+0.1%)
* Dow Jones: 42,002.30 (-0.1%)
* Russell 2000: 2,213.90 (-0.6%)
Key ETF movements include:
* SPDR S&P 500 ETF Trust (SPY): Flat at $568.42
* SPDR Dow Jones Industrial Average (DIA): Down 0.1% to $420.26
* Invesco QQQ Trust Series (QQQ): Flat at $482.36
* iShares Russell 2000 ETF (IWM): Down 0.5% to $220.36
Notable stock movers include:
* Tesla Inc. (TSLA): Up 4%
* General Motors Co. (GM): Down 2.7%
* Intel Corp. (INTC): Up over 3%
* Qualcomm Inc. (QCOM): Down 2%
* Ciena Corp. (CIEN): Upgraded from Sell to Buy by Citigroup
* Viking Therapeutics Inc. (VKTX): Down over 6%
The week ahead promises to be a crucial one for markets as investors navigate a complex web of economic, political, and geopolitical challenges.
