Market Update: September 2, 2024
U.S. stock futures were down on Tuesday morning as Wall Street prepared to start a new trading month after a volatile August. By 08:59 GMT (04:59 EST), Dow futures had dropped 123 points, or 0.3%, while S&P 500 futures fell 21 points, or 0.4%. Meanwhile, Nasdaq 100 futures declined by 72 points, or 0.4%.
U.S. markets were closed on Monday in observance of the Labor Day holiday. Despite the holiday, Friday’s session ended on a high note, allowing the major averages to close August in positive territory. The S&P 500, after a steep drop of over 7% earlier in the month due to recession fears, managed to rebound and finish up 2.3% for August, marking its fourth consecutive month of gains. The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite also posted gains of 1.8% and 0.7%, respectively.
Harris Opposes US Steel-Nippon Steel Deal
Democratic presidential candidate Kamala Harris has expressed opposition to the proposed $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel. Speaking in Pennsylvania, a key state for the 2024 election, Harris emphasized the importance of keeping U.S. Steel “American-owned and American-operated.” This stance mirrors that of President Joe Biden and his former vice president, and it also aligns with Donald Trump’s opposition to the deal. Both Democratic and Republican leaders, alongside the United Steelworkers union, are concerned about potential national security risks and job losses associated with the merger. Despite the opposition, U.S. Steel and Nippon Steel continue to advocate for the deal, arguing that it will strengthen the U.S. steel industry.
Tesla to Launch Six-Seat Model Y in China
Tesla is reportedly planning to introduce a six-seat version of its popular Model Y vehicle in China by late 2025, according to a report from Reuters. The move is part of Tesla’s broader strategy to enhance the appeal of the Model Y in a highly competitive Chinese market dominated by domestic electric vehicle manufacturers. Tesla has advised its suppliers to prepare for a substantial increase in production at its Shanghai factory. While the specifics of the production ramp-up are still unclear, the company is currently awaiting approval to expand its factory on an adjacent 70-hectare plot. August was Tesla’s strongest month in China this year, with sales increasing by 37% from July.
Brazil’s President Supports Ban on Elon Musk’s X Platform
Brazilian President Luiz Inácio Lula da Silva has voiced his support for the Supreme Court’s decision to uphold a ban on Elon Musk’s social media platform, X. Lula criticized Musk’s far-right ideology, stating that wealth does not grant immunity from regulatory oversight. The ban, implemented by Supreme Court Justice Alexandre de Moraes, was due to the platform’s failure to comply with hate speech regulations. In response, Musk labeled de Moraes a “dictator” and faced additional sanctions, including a freeze on Brazilian bank accounts associated with Musk’s Starlink satellite broadband business.
Crude Oil Prices Mixed Amid Global Uncertainties
Crude oil prices were mixed on Tuesday as traders weighed concerns over China’s slowing economic growth against the disruption of oil production and exports in Libya. By 03:15 ET, Brent crude had edged down 0.1% to $77.42 per barrel, while U.S. crude futures (WTI) rose 0.2% to $74.17 per barrel. Libya’s halt in oil exports and production due to internal conflict provided some support to the market, but concerns about reduced demand from China, the world’s largest crude importer, kept prices in check.
Key Levels to Watch: SPY/SPX
The main level to monitor this week for SPY/SPX is the near-term range high at 5665. If sellers continue to defend this level, the price may retest the key daily pivot near 5600, followed by the range low at 5585. A breakout above 5665 could see the price target levels at 5700, 5720, and 5775. Conversely, a break below 5585 might push prices down to 5565 and 5525.
Upside Levels of Interest: 5665, 5700, 5720, 5775
Downside Levels of Interest: 5600, 5585, 5565, 5525
Upcoming Economic Data
- Tuesday: ISM Manufacturing PMI
- Wednesday: JOLTS, Fed’s Beige Book
- Thursday: Jobless Claims
- Friday: Non-Farm Payrolls (NFP)
Stay tuned for more updates in the OptionsPlayers.com chat.
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