US Stock Futures Jump Early Monday Ahead of a Busy Week

27 Sep 2021 · 3rd Party Analysis

US Stock Futures Jump Early Monday Ahead of a Busy Week


In Summary

  • Futures on the Dow Jones jumped over 150 points in pre-market trading Monday
  • Fed Chair Powell and Treasury Secretary Yellen appear before Senate on Tuesday

Stock Futures Advance Ahead of a Busy Week

Stock futures on the major indexes in the US climbed ahead of the first trading day of the week. Following a largely jittery trading environment last week, futures on the Dow Jones Industrial Average were higher by over 150 points early on Monday. S&P500 futures advanced about 0.3%, while Nasdaq Composite futures gained 0.1% ahead of the bell today.

The next several days will be significant in a few ways. Traders and investors will be looking to find out how the Evergrande crisis will unfold. The Chinese real-estate developer is yet to make interest payments to its many creditors both in mainland China and outside of the country.

A Key Hearing Before US Lawmakers

In Washington this week, Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen will appear before the US Senate to discuss the progress of the economy. They are expected to address increasing concerns such as higher inflation, the pace of economic recovery, and the outlook for labor-market growth.

The hearing before lawmakers will come at a time when the US economy is showing signs of a slowdown. In addition, inflation is at its highest in over a decade and the US Federal Reserve is planning to reverse its monetary stimulus.

Before the testimony, a vote on the $1tn infrastructure package will happen today in the House of Representatives. The crucial vote would be one of the biggest tests for the sweeping economic agenda of President Joe Biden.

Jobless Claims and Inflation Data Later in the Week

On Thursday, the US will reveal the initial jobless claims for the previous week. After a slight increase in the prior two weeks, first-time filings for unemployment benefits are expected to return on their downward trajectory.

At the end of the week, on Friday, the inflation numbers for the eurozone will be published. Europe is going through its highest inflation in almost a decade. Analysts predict the increase in consumer prices will accelerate for September.

Also on Friday, US consumer spending is projected to increase for August as the economy remained largely opened. Additionally, the US Commerce Department will release a key measure of inflation. The Personal Consumption Expenditure price index (PCE), which excludes the often-volatile food and energy sectors, will be published on Friday. The key indicator is the preferred inflation measure by the Federal Reserve.

Bitcoin Needs 6% to Finish the Month in the Green

Cryptocurrencies this week will seek to close the month in positive territory. While bitcoin has gained about 10% over the past week, it is still down roughly 6%, or $3,000, from its opening price for September.

To finish the month with a positive return, the original cryptocurrency would have to reach a price of $47,000 per coin. Over the past three months, however, bitcoin is higher by more than 30% to the current market price of nearly $44,000.

In conclusion, as the final week of September has arrived, the next few days will mark the end of the third quarter of the year. Elevated volatility could sweep into the financial markets globally as investors could rush to close the third trimester and position their portfolios for the final quarter of a wild year.

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