ZUMZ - S&P 500 Nasdaq Futures Point to Another Gloomy Start Amid Rate-Hike Worries — But One Analyst Still Sees A Rosy 2024 | Benzinga
Stocks are set for a weak start on Thursday due to growing inflation concerns leading up to the Sept. 19-20 Federal Reserve meeting. Weak Chinese economic data have raised worries about a global economic impact. Additionally, China’s ban on iPhones in sensitive government offices could weigh on the tech sector, affecting companies that depend on China for production or sales.
However, there is some relief with lower bond yields and oil prices. Traders will also pay attention to second-quarter productivity and costs data, weekly jobless data, and various Fed speeches throughout the day.
Cues From Past Week's Trading:
Mixed service sector readings and their implication for inflation and in turn the Fed rate weighed down on trader sentiment, as they sent stocks lower for a second straight session on Wednesday. The major averages opened lower and fell through the morning and then consolidated around these lower levels.
The price component of the Institute for Supply Management's service sector survey particularly worried investors as it pointed to inflationary pressure that stayed stubbornly high. Bond yields rose in reaction to the data, aggravating the weakness.
Most sector stocks moved to the downside, led by IT and consumer discretionary stocks, while energy and utility stocks bucked the downtrend.
US Index Performance On Tuesday
Index Performance (+/-) Value
Nasdaq Composite -1.06% 13,872.47
S&P 500 Index -0.70% 4,465.48
Dow Industrials -0.57% 34,443.19
Russell 2000 -0.33% 1,874.28
Analyst Color:
September is the worst-performing month for the stock market historically, down on average 1.1% since 1928, and rising less than 45%of the time but this year ...