US Stock Futures Slightly Down; Powell’s Speech in Spotlight

U.S. stock futures dipped on Monday, though September is shaping up to be a positive month as investors anticipate remarks from Federal Reserve Chair Jerome Powell regarding potential interest rate cuts.

As of 05:45 ET, Dow Futures were down 28 points, or 0.1%, while S&P 500 Futures decreased by 5 points, also a 0.1% drop. Nasdaq 100 Futures saw a decline of 25 points, equating to a 0.1% reduction.

The last trading day of the month may begin on a slightly negative note; however, the Federal Reserve’s recent decision to implement a significant 50 basis point interest rate cut suggests that September will end positively, despite its historical status as a weak month for the stock market.

The Dow Jones Industrial Average has risen 1.8% month-to-date, closing at a new record high on Friday, while the S&P 500 increased by 1.6%, and the tech-heavy Nasdaq climbed 2.3% throughout September.

### Powell Set to Speak

This optimism stems largely from investor expectations that the Federal Reserve will announce another substantial 50 basis point interest rate reduction at its upcoming meeting, driven by easing price pressures and a decline in labor demand.

Traders are now focused on Powell’s comments regarding the economic outlook during the National Association for Business Economics annual meeting in Tennessee later in the day.

Moreover, the week will conclude with the release of the October nonfarm payrolls report on Friday, with economists projecting that the U.S. economy added 144,000 jobs.

Investors will be eager to see of the jobs data bolsters expectations for a soft-landing scenario—where the Fed manages to control inflation without severely impacting growth—or reignites concerns about a potential recession.

### Stellantis Cuts Annual Forecasts

On the corporate front, Carnival is set to release its quarterly results on Monday as the third quarter wraps up.

In another development, Stellantis stock tumbled over 10% in premarket trading after the company, which includes brands like Chrysler, Dodge, and Jeep, lowered its annual forecasts and indicated it would experience greater cash burn than anticipated due to deteriorating industry trends and increased costs associated with restructuring its U.S. operations, along with competition from Chinese electric vehicle manufacturers.

The consumer discretionary sector is on track to be the best-performing segment of the S&P 500 in September, with a rise of 7.3% for the month. Following closely is the utilities sector, which has seen an approximate 6% increase. In contrast, financials, healthcare, and energy sectors are all showing declines this month.

### Crude Gains Amid Middle East Tensions

Oil prices rose slightly on Monday amid concerns over a potential escalation of conflict in the Middle East after Israel intensified its military actions against Iranian-backed militant groups, including Hezbollah and the Houthis.

At 05:45 ET, Brent crude was up 0.2% at $71.69 per barrel, while U.S. crude futures remained largely flat at $68.17 per barrel.

Israel conducted airstrikes against Houthi targets in Yemen over the weekend, following the reported elimination of Hezbollah leader Sayyed Hassan Nasrallah amid escalating tensions in Lebanon.

Both oil contracts faced declines last week due to rising demand concerns stemming from China’s fiscal stimulus measures, which failed to bolster overall market confidence.