Equity futures to rise slightly in first full week of trading in October

Texas News Today

US stock futures were higher in Sunday night trading as investors prepared for the first full week of trading and the fourth quarter in October.

Dow futures rose nearly 88 points. S&P 500 futures rose 0.24% and Nasdaq 100 futures rose 0.29%.

Friday marked the first trading day of October and the last quarter of 2021. Key averages rose on the day with news of a new oral treatment for COVID-19, which pushed stocks linked to an economic recovery.

Markets corrected after rough waves in September, plagued by concerns over inflation, a shrinking Federal Reserve and rising interest rates. Last week the 10-year rate was over 1.56%, the highest since June.

The S&P 500 ended the month down 4.8%, beating seven consecutive months. The Dow and Nasdaq Composite fell 4.3% and 5.3%, respectively, and suffered their worst month of the year.

The fourth quarter is usually a good time for equities, but central bank tightening, debt cap and overhangs from Chinese developers Evergrande, Covid-19 and others may make investors cautious. More than half of all S&P stocks are discounted by at least 10% for the fourth quarter.

According to the CFRA, the S&P 500 grew an average of 3.9% in the fourth quarter, a fourfold increase every five years since World War II.

“The fourth quarter of 2021 may record higher than average returns, but investors are typical of October with 36% higher volatility than other 11-month averages. You have to stay fit during a turbulent ride. Sam Stovall, chief investment strategist at CFRA.

One of the first hurdles the market faces in the new quarter is Friday’s carefully monitored jobs report, which could prompt the Federal Reserve’s decision to reduce bond buying programs. I have.

Economists expect to add about 475,000 jobs in September, according to early consensus data from FactSet... The salary added in August was only 235,000, about 500,000 less than expected.

— CNBC’s Patti Dom contributed to this report.

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