Following a mixed performance last week, stocks are anticipated to trend upward as we start Monday's trading. Current futures suggest a positive opening on Wall Street, with the S&P 500 futures rising by 0.4%.
This early market optimism is largely fueled by a significant decline in oil prices, with December crude oil futures plummeting $4.36 to $67.42 per barrel. The steep drop is attributed to the fact that Israel's retaliatory strikes on Iran over the weekend did not impact the country's energy infrastructure.
Despite the initial buying interest, overall trading activity might be somewhat restrained as investors await critical U.S. economic reports due later this week. Key data, including the monthly jobs report and a report on personal income and spending—featuring the Federal Reserve's preferred inflation metrics—are expected to draw significant attention. Additional reports covering third-quarter GDP, consumer confidence, pending home sales, and manufacturing sector activity may also influence market sentiment.
These economic indicators could shape the economic outlook and influence expectations regarding the Federal Reserve's timeline for interest rate cuts.
In the coming days, corporate earnings will also be a focal point, with major players such as Alphabet (GOOGL), Amazon (AMZN), Exxon Mobil (XOM), Intel (INTC), McDonald's (MCD), Meta Platforms (META), Microsoft (MSFT), and Pfizer (PFE) scheduled to release their quarterly results.
On Friday, the major U.S. stock indexes delivered another mixed performance following a session of contrasting results on Thursday. The tech-heavy Nasdaq extended its gains from the previous day, while the Dow continued its losing streak for a fifth consecutive session.
The Nasdaq reached a new record high during early trading, only to relinquish some gains as the session progressed, ultimately closing up 103.12 points or 0.6% at 18,518.61. In contrast, the Dow fell by 259.96 points or 0.6% to 42,114.40, retreating significantly from last Friday's record close. Meanwhile, the S&P 500 edged down slightly by 1.74 points, or less than 0.1%, to 5,808.12.
For the week, the major averages displayed a varied performance. The Dow declined by 2.7%, the S&P 500 by 1.0%, while the Nasdaq inched up by 0.2%.
In international markets, stock exchanges across the Asia-Pacific region mostly recorded gains on Monday. Japan's Nikkei 225 Index surged by 1.8%, and China's Shanghai Composite Index rose by 0.7%.
Conversely, European markets showed a mixed performance. The French CAC 40 Index gained 0.1%, while Germany's DAX Index fell 0.3%, and the U.K.'s FTSE 100 Index dropped 0.5%.
In commodities, crude oil futures are falling sharply, down $4.36 to $67.42 per barrel, following a $1.59 increase to $71.78 per barrel last Friday. Meanwhile, gold futures are down $9.90 to $2,744.70 an ounce after rising $5.70 to $2,754.60 an ounce in the prior session.
On the currency market, the U.S. dollar is trading at 152.58 yen, compared to 152.31 yen at the close of New York trading on Friday. Against the euro, the dollar stands at $1.0818, up from last Friday's $1.0796.
