After a strong finish to last week, thanks to benign inflation data, sentiment appears to have soured as the market opens after Monday’s Thanksgiving holiday. The index futures were sharply lower early Tuesday. Risk appetite has waned as the market looks ahead to the monthly jobs data, considered a piece of the puzzle that can decide the fate of the widely anticipated rate cuts by the Federal Reserve.
The CBOE Volatility Index, commonly referred to as VIX, spiked by 6.37% to 16.54. Safe haven currencies such as the yen and the U.S. dollar gained ground against their major counterparts
LPL Financial Chief Technical Strategist Adam Turnquist flagged a potentially weak September, with flattish performance in the first half and losses accelerating into the month end. ” For this year, the midway point also happens to line up closely with the September 18 Federal Open Market Committee Meeting,” he said.
Since 1950, the S&P 500 has generated an average return of -0.7% in September and finished higher only 43% of the time, making it the worst month for stocks on an average return and positivity rate basis, he noted.
Futures
Performance (+/-)
Nasdaq 100
-0.84%
S&P 500
-0.59%
Dow
-0.53%
R2K
-1.12%
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.49% to $560.90, and the Invesco QQQ ETF (NASDAQ:QQQ) slid 0.67% to $473.09, according to Benzinga Pro data.
Cues From Last Week:
Nvidia Corp.’s (NASDAQ:NVDA) earnings proved to be a dampener for the market in the week ended Aug. 30, as stocks stalled ahead ...
