U.S. stocks could start the first trading session of the week on a mixed note, as traders fully bake in the odds of a rate cut by the Federal Reserve this week. Small-caps are outperforming in the premarket, as evidenced by the solid rise in the Russell 2,000 futures. Analysts and market watchers are polarized about the impact the widely anticipated rate cut can have on the market.
Some consolidation around the current levels could not be ruled out before the Fed’s interest-rate announcement, scheduled for Wednesday. While some call for broadening of the market rally, with tech stocks likely to add on to their gains, others draw cues from history, which shows that the market typically collapses after a rate cut. Regional manufacturing activity data could also impact the market direction of the day.
Futures
Performance (+/-)
Nasdaq 100
-0.29%
S&P 500
-0.04%
Dow
+0.17%
R2K
+0.58%
In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE: SPY edged down 0.02% to $561.77 and the Invesco QQQ ETF (NASDAQ: QQQ) edged down 0.24% to $474.19, according to Benzinga Pro data.
Cues From Last Week:
Wall Street rallied hard in the week ended Sept. 6, reversing from the previous week’s tech-led sell-off. Benign inflation data sealed the fate of the market, as the S&P 500 and the Nasdaq Composite indices rallied in all five sessions of the week, settling at the highest levels since late September. These averages recorded their best weekly gains for the year.
The
Index
Week’sPerformance ...
