What will drive the markets this week?
On Friday, the S&P 500 closed in the red as investors assessed the impact of a U.S. inflation report on the Federal Reserve’s interest rate strategy and made adjustments to their investment portfolios. This marked the conclusion of a lackluster third quarter for the stock market.
The Dow Jones Industrial Average (.DJI) declined by 158.84 points, equivalent to a 0.47% drop, closing at 33,507.5. Similarly, the S&P 500 (.SPX) saw a 0.27% decrease, shedding 11.65 points to end at 4,288.05. In contrast, the Nasdaq Composite (.IXIC) managed a slight gain of 18.05 points, or 0.14%, closing at 13,219.32.
Last week’s hawkish stance on long-term interest rates by the Federal Reserve, accompanied by the eagerly awaited PCE data, caused concerns among investors. This sentiment led to a rise in benchmark Treasury yields to their highest levels in 16 years, contributing to stock market unease.
In Europe, shares experienced an uptick on Friday, driven by a decrease in euro zone inflation for September, which bolstered expectations of a pause in interest rate hikes by the European Central Bank. Nonetheless, the benchmark index still recorded its worst quarterly performance in a year.
Across Asia-Pacific markets, the final trading day of the week witnessed mostly positive movements, with Hong Kong’s Hang Seng index leading the gains, surging by 2.67% during its closing hour.
This week, there is a potential threat of a government shutdown unless congressional leaders reach an agreement on last-minute spending bills to keep the government operational beyond September 30.
Additionally, we can anticipate the release of several important reports on the job market, including the August Job Openings and Labor Turnover Survey (JOLTS), ADP’s National Employment Report tracking private sector payrolls, and the nonfarm payrolls report for September. Earnings reports from Constellation Brands and Levi Strauss are also on the agenda for this week.
Monday, Oct. 2
- S&P Global Manufacturing PMI - Final Reading (September)
- ISM Manufacturing PMI (September)
- Construction Spending (August)
Tuesday, Oct. 3
- McCormick & Company (MKC), Cal-Maine Foods Inc. (CALM), and Novagold Resources Inc. (NG) report earnings
- Job Openings and Labor Turnover Survey (JOLTS) (August)
- IBD/TIPP Economic Optimism Index (October)
- LMI Logistics Managers’ Index (September)
Wednesday, Oct. 4
- RPM International Inc. (RPM), Acuity Brands Inc. (AYI), and Helen of Troy Ltd. (HELE) report earnings
- ADP National Employment Report (September)
- S&P Global Services PMI - Final Reading (September)
- S&P Global Composite PMI - Final Reading (September)
- ISM Services PMI (September)
- Factory Orders (August)
Thursday, Oct. 5
- Constellation Brands (STZ), Lamb Weston Holdings (LW), ConAgra Brands (CAG), and Levi Strauss & Co. (LEVI) report earnings
- Challenger, Gray & Christmas Job Cuts (September)
- U.S. Trade Balance (August)
Friday, Oct. 6
- U.S. Nonfarm Payrolls (September)
- Consumer Credit Report (August)