The stock market is poised for a potential downturn as trading begins on Monday, likely retracting some of the recent gains. Futures for major indexes, including the S&P 500, indicate an anticipated decline of 0.3 percent at market open.
Investors may be inclined to capitalize on the recent uptrend that has led the major averages to climb over the past six weeks. This rally has pushed the Dow Jones Industrial Average and S&P 500 to unprecedented heights, while the Nasdaq nears the all-time high it reached in July.
Despite the momentum, trading volumes might be restrained as market participants await a slew of corporate earnings reports scheduled for this week. Among those set to disclose their quarterly earnings are leading companies such as 3M (MMM), General Motors (GM), Verizon (VZ), Boeing (BA), Coca-Cola (KO), IBM (IBM), Tesla (TSLA), and UPS (UPS).
In addition to corporate earnings, forthcoming reports on durable goods orders and both new and existing home sales are expected to capture market attention, along with the Federal Reserve's Beige Book.
Shortly after trading commences, The Conference Board will publish its September Leading Economic Indicators report, with projections of a 0.3 percent decline following a 0.2 percent decrease reported in August.
In the last session on Thursday, stocks exhibited minimal change, but saw a general uptrend on Friday, driven predominantly by gains in the Nasdaq. The Dow managed to end the day slightly higher, setting a new record close.
Specifically, the Nasdaq surged by 115.94 points, or 0.6 percent, reaching 18,489.55, while the S&P 500 gained 23.20 points, or 0.4 percent, achieving a record close at 5,864.67. The Dow climbed 36.86 points, or 0.1 percent, to close at 43,275.91.
Over the past week, the Dow rose by 1.0 percent, with increments of 0.9 percent and 0.8 percent recorded for the S&P 500 and the Nasdaq, respectively.
On the global stage, the Asia-Pacific region experienced mixed market results. Japan’s Nikkei 225 saw a slight drop of 0.1 percent, while China’s Shanghai Composite Index increased by 0.2 percent.
Conversely, key European markets have generally declined today. The U.K.’s FTSE 100 Index is down 0.2 percent, while Germany’s DAX and France’s CAC 40 indexes have both fallen by 0.8 percent.
In the commodities sector, crude oil futures have risen by $1.21 to $70.43 per barrel, following a drop of $1.45 to $69.22 last Friday. Gold futures have also climbed, gaining $22.30 to reach $2,752.30 an ounce, having previously increased by $22.50 to $2,730 an ounce.
On the currency markets, the U.S. dollar is valued at 149.81 yen, up from 149.53 yen at Friday’s New York close. Against the euro, the dollar is trading at $1.0856, slightly lower compared to last Friday’s rate of $1.0867.
