OP Wire: Monday Market Recap and Key Updates for the Week
Choppy Futures as Investors Await Key Economic Data
US stock futures were volatile early Monday, hovering around both sides of the flatline as investors brace for fresh economic data later this week that could influence the Federal Reserve’s approach to monetary policy for the rest of the year. By 03:30 ET, Dow futures had dropped 116 points (-0.3%), S&P 500 futures fell 15 points (-0.3%), and Nasdaq 100 futures dipped 63 points (-0.3%).
The main indices were muted on Friday, with the Dow Jones Industrial Average briefly touching a new record high thanks to a surge in Nike stock following the news of CEO John Donahoe’s departure.
For this week, SPX/SPY traders will be watching the 20,250 level, which marked a lower high from mid-August. Buyers are hoping to break through this resistance and push toward 20,500 and above. If sellers defend, price could drop to key levels like 19,850 or lower.
We’ve had success with AAPL put plays (both alerted gains) in the recent triple witching event, so hopefully everyone hit their goals last week. If you haven’t followed the steps from my welcome email, reach out for it again, as ignoring these can be costly!
Fed Speakers to Watch This Week
Investors are eagerly awaiting comments from Federal Reserve officials, which could provide further insight into the Fed’s 50-basis point rate cut last week. Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee are scheduled to speak early this week, followed by Fed Governor Michelle Bowman—the first Fed official to dissent on a decision since 2005.
Bowman expressed concern that the jumbo rate cut might send the wrong signal given inflation’s current pace, contrasting with Governor Christopher Waller, who supported the cut to prevent inflation from undershooting the Fed’s 2% target. The week wraps up with Fed Chair Jerome Powell speaking at the 10th Annual US Treasury Market Conference on Thursday.
Apollo Proposes $5 Billion Investment in Intel
Big news over the weekend came from Apollo Global Management (NYSE: APO), which has offered to invest $5 billion in Intel Corporation (NASDAQ: INTC). The deal is aimed at providing Intel with breathing room as the company faces a steep sales decline and a possible cash crunch. This comes after Intel’s cost-cutting measures, including plans to cut headcount by as many as 15,000 employees. Earlier this year, Apollo acquired a 49% interest in a joint venture for Intel’s new facility in Ireland.
House Republicans Unveil Government Funding Bill
In other news, US House Republicans have put forward a stopgap bill to fund the government for the next three months and avoid a potential partial government shutdown. The current $1.2 trillion discretionary funding is set to expire on September 30, which could result in federal workers being furloughed just weeks before the presidential election if no action is taken.
Oil Inches Up Amid Middle East Tensions
Crude prices were slightly up Monday, driven by concerns over rising tensions in the Middle East. Traders are pricing in potential supply disruptions as the conflict between Israel and Hezbollah intensifies. Brent crude gained 0.2% to $73.81 per barrel, while WTI crude traded 0.2% higher at $71.10. The market remains on edge, with crude prices rebounding from recent three-year lows.
Remember, it’s Monday! Catch up with us in chat for today’s upgrades and downgrades. If you haven’t read through and followed my welcome email, now’s the time! See you soon with more updates and insights from the markets.
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