US Stock Market Seeks Recovery⁢ After Last Week’s Losses

US stock futures rose on ⁢Monday, indicating Wall ‌Street’s ⁣attempt to recover some of⁢ the sharp losses experienced last ‌week. ⁢Historically, September has been a challenging month for stocks, and last week was no exception.

Recovery Movement After Loss

Last week, the S&P 500 fell 4.3%, marking ⁣its worst week since March 2023. The Nasdaq Composite plunged 5.8%, its worst week since 2022, while the Dow Jones Industrial Average fell 2.9%. These‍ declines were triggered ‍by concerns about a slowing labor market following​ the August jobs report.

Inflation Data and⁤ Interest ⁢Rates

This week, investors are closely watching two major inflation reports​ that could influence the Fed’s September ⁤policy meeting decision. The August consumer price index (CPI) and⁣ producer price ⁢index (PPI) reports are scheduled to be released on Wednesday and Thursday⁤ morning, respectively. According to CME Group’s FedWatch tool, the ‍market predicts a 71% chance of ‍a 25 basis point rate cut by the Fed at its next meeting, while ‌a 50 basis point cut is seen as less likely at ⁣29%. Vincent Deloitte ⁤of StoneX ‌believes that Powell is eager to cut rates but is being⁢ cautious and⁣ unlikely to risk a 50 basis point cut in September.

Trump’s Pledge to Maintain Dollar⁢ Hegemony

Former President Donald Trump recently stated that‌ he would impose a 100% tariff on countries‍ that turn ​away from the US dollar. ‍Hao ‍Hong of Grow Investment Group believes ‌that this ‌move would harm both the US and China. ⁢Trump’s pledge is seen as a strong retaliatory ⁢measure to ⁣protect ‌the dollar’s hegemony⁢ in the ​global financial‌ market.

Stock Index Futures Rise

According to CNBC data, Dow Jones futures rose 0.69%, Nasdaq futures rose 0.86%, and S&P 500 ​futures rose 0.73%. The US dollar index also rose 0.46%‌ to 101.64, while the ⁢yield ‌on the 10-year Treasury note increased 3.6 basis points to 3.750%. Additionally, WTI futures rose 0.99% to‍ $68.33 a barrel.

Key Takeaways

• US stock⁣ futures rose⁣ on Monday, indicating a recovery attempt ‍after last week’s losses.
• The S&P 500, Nasdaq Composite, and ‌Dow ⁣Jones Industrial‌ Average experienced significant ⁢declines ​last week.
• Inflation reports and interest rates are ⁣being ‌closely watched by investors ⁢this week.
• Trump’s pledge to maintain dollar hegemony has sparked concerns about potential harm to the US and China.