Stock futures pointed to a lower start on Tuesday as the selling pressure that dominated September persisted on Wall Street, following gains in the previous session.
Futures linked to the Dow Jones Industrial Average were down by 130 points, or 0.4%. S&P 500 futures and Nasdaq-100 futures both declined by 0.5%.
These declines would contribute to the overall losses the market has experienced this month. As of Tuesday, the Nasdaq Composite had fallen by 5.4% in September, while the S&P 500 and Dow had registered losses of 3.8% and 2.1%, respectively. One of the factors weighing on the stock market this month is the Federal Reserve’s announcement that it anticipates fewer interest rate cuts next year. This news pushed the yield on the 10-year Treasury bond to levels not seen since 2007.
Investors are also closely monitoring developments in Washington this week, where lawmakers are working to avoid a government shutdown that could occur as soon as October 1st if Congress fails to reach an agreement on a spending bill.
The upcoming turbulent market conditions could offer an opportunity for investors. October has earned a reputation as a somewhat unlucky month due to the historical crashes in 1929 and 1987. However, it’s also known as a month that can reverse bear markets, as stated in the “Stock Trader’s Almanac.”
Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, explains, “While October tends to be more volatile, it often provides excellent buying opportunities because it precedes the historically strong months of November and December for the markets.”
In terms of economic data, investors will be paying attention to the final building permits report for August, which is expected before the market opens on Tuesday. Additionally, data on new home sales for the previous month will be released later that morning. The September Consumer Confidence Report from the Conference Board is also forthcoming.
Wall Street recently saw a positive session, breaking a four-day losing streak.
Also Read: Four Industrial Stocks with Potential for a September Collapse
Jamie Dimon suggests that the U.S. economy might be experiencing a temporary boost.
Jamie Dimon, the CEO of JPMorgan Chase, expressed some concerns about the U.S. economy. He mentioned that the current positive economic situation might not last much longer. Dimon referred to the substantial fiscal stimulus and monetary measures that have been in place, describing them as a kind of “sugar high.”
“And that little bit is going to go away,” he continued, “and we are hoping we have a soft landing, but all these other things are there – Ukraine, oil, gas, winter, disruption of trade flows.”
Dimon emphasized the importance of strong leadership from countries like the United States, India, China, and Europe to prevent potential negative developments. Despite his hopes for a positive outcome, he expressed a cautious outlook regarding the economic situation.
