U.S. stock futures were relatively flat Thursday evening as traders adjusted to a lackluster September.
S&P 500 and Nasdaq 100 futures saw modest gains of less than 0.1%, while futures for the Dow Jones Industrial Average rose by 26 points.
In Thursday’s regular trading session, investors showed increased interest in major technology stocks, including Nvidia, which propelled the S&P 500 and Nasdaq Composite to a fourth consecutive day of gains. The S&P 500 is now down just 0.9% for September and remains about 1.3% short of its record high. The Dow, which advanced roughly 0.6% on Thursday, was bolstered by strong performances from Salesforce and Microsoft.
Attention on Wall Street is turning to the Federal Reserve’s upcoming policy meeting on September 17-18, with expectations that the central bank will lower interest rates by 25 basis points. The current target rate stands at 5.25% to 5.5%.
Economic indicators suggest a moderating inflationary environment, supporting the case for a potential rate cut. The August Consumer Price Index (CPI) came in at 2.5% on an annualized basis, the lowest level since February 2021. Additionally, wholesale prices rose by 0.2% in August, aligning with forecasts.
Dan Greenhaus, chief strategist at Solus Alternative Asset Management, commented on CNBC’s “Closing Bell,” saying, “At the end of the day, the U.S. consumer and the economy continue to perform well, and profits are exceeding expectations. While we saw a significant sell-off in some AI-related stocks, the rebound appears justified as these issues do not seem to be expanding.”
The major indices are set to record weekly gains, with the S&P 500 up 3.5%, the Nasdaq poised for a 5.3% increase, and the Dow advancing 1.9% week-to-date.
Looking ahead, traders will be monitoring August’s import prices data, set for release on Friday morning, as well as preliminary consumer sentiment figures for September.
