December S&P 500 E-Mini futures (ESZ25) are down -0.30%, and December Nasdaq 100 E-Mini futures (NQZ25) are down -0.35% this morning, pointing to a slightly lower open on Wall Street as investors look for fresh catalysts to drive equities already trading at record highs.
This week, investors will focus on remarks from Federal Reserve Chair Jerome Powell and other Fed officials as well as the release of the Fed’s preferred inflation gauge and other key economic data.
In Friday’s trading session, Wall Street’s major equity averages closed higher, with the S&P 500, Dow, and Nasdaq 100 notching new record highs. The Magnificent Seven stocks advanced, with Apple (AAPL) rising over +3% and Tesla (TSLA) gaining more than +2%. Also, Oracle (ORCL) climbed over +4% after Bloomberg reported that the company was in talks with Meta Platforms for a cloud computing deal worth about $20 billion. In addition, FedEx (FDX) rose more than +2% after the logistics giant posted better-than-expected FQ1 results and reinstated its full-year guidance. On the bearish side, Lennar (LEN) fell over -4% after the homebuilder reported downbeat FQ3 results and issued below-consensus FQ4 home deliveries guidance.
“A Fed easing cycle in a non-recessionary environment has historically helped support stocks, and we see further gains underpinned by AI, earnings, and consumption,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.
Minneapolis Fed President Neel Kashkari said on Friday that he supported the FOMC’s decision to cut interest rates and penciled in two more cuts this year. Separately, Fed Governor Stephen Miran told CNBC that his decision to dissent from fellow policymakers’ rate move was based on his view that tariffs have not had a significant impact on inflation.
Meanwhile, U.S. rate futures have priced in a 91.9% chance of a 25 basis point rate cut and an 8.1% chance of no rate change at the conclusion of the Fed’s October meeting.
A highly anticipated phone call on Friday between U.S. President Donald Trump and Chinese leader Xi Jinping ended with both leaders agreeing to continue discussions. President Trump said he made progress on many key issues and will meet Xi on the sidelines of the Asia-Pacific Economic Cooperation Summit in South Korea next month.
This week, the August reading of the U.S. core personal consumption expenditures price index, the Fed’s preferred inflation gauge, will be the main highlight, as investors continue to assess the extent to which tariffs have driven up inflation. If evidence continues to indicate that the impact is limited, this could be seen as clearing the way for additional rate cuts. Preliminary purchasing managers’ surveys for September will also be closely monitored, as they will provide updates on activity in the manufacturing and services sectors. Other noteworthy data releases include U.S. GDP (third estimate), the Richmond Fed Manufacturing Index, New Home Sales, Durable Goods Orders, Core Durable Goods Orders, Initial Jobless Claims, Wholesale Inventories (preliminary), Existing Home Sales, Personal Income, Personal Spending, and the University of Michigan’s Consumer Sentiment Index.
Fed Chair Jerome Powell will deliver a speech on the economic outlook in Rhode Island on Tuesday. A host of other Fed officials will also be making appearances throughout the week, including Williams, Barkin, Musalem, Hammack, Miran, Bowman, Bostic, Daly, Goolsbee, Barr, and Logan.
In addition, several notable companies, including chipmaker Micron Technology (MU), bulk retailer Costco (COST), advisory firm Accenture (ACN), and auto parts seller AutoZone (AZO), are set to report their quarterly figures this week.
The U.S. economic data slate is largely empty on Monday.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.131%, down -0.22%.
The Euro Stoxx 50 Index is down -0.62% this morning, starting the new week on a downbeat note. Automobile stocks led the declines on Monday, with Porsche (P911.D.DX) sliding over -7% after the luxury automaker cut its 2025 profit guidance as it scaled back electric vehicle rollout plans amid weaker demand. Airline stocks also lost ground after a wave of cyberattacks on several major European airports forced flight cancellations. Limiting losses, technology and mining stocks advanced. Meanwhile, a study released by the European Central Bank on Monday found that Eurozone consumers have adjusted their consumption habits in anticipation of U.S. tariffs, shifting away from American goods and cutting back on discretionary spending. Investors now await the Eurozone’s preliminary consumer confidence data for September, due later in the session. Later this week, attention will be on flash purchasing manager indexes for September. In addition, Sweden’s Riksbank and the Swiss National Bank will announce their monetary policy decisions this week. In other corporate news, Fugro (FUR.NA) plunged more than -9% after the Dutch geo-data specialist withdrew its full-year guidance.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.22%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.99%.
China’s Shanghai Composite Index ended higher today as sentiment improved amid positive signals from high-level U.S.-China talks. U.S. President Donald Trump highlighted progress on China-related matters and said he would meet Chinese President Xi Jinping in six weeks in South Korea to discuss trade, illicit drugs, and Russia’s war in Ukraine. Homin Lee, a senior macro strategist at Lombard Odier Singapore Ltd., said, “The Trump-Xi phone call keeps momentum toward additional deals from their in-person summit.” Shares of Apple suppliers climbed on Monday after the U.S. tech giant’s latest iPhone release drew strong shopper turnout. Chip stocks also advanced. Meanwhile, China left its benchmark lending rates unchanged for the fourth straight month in September, despite sluggish credit demand and slowing growth momentum. The one-year loan prime rate was kept at 3.00%, while the five-year rate remained at 3.50%, according to the People’s Bank of China. In other news, China Securities Regulatory Commission Chairman Wu Qing said at a press briefing on Monday that the regulator will continue enhancing the quality of listed companies, attract more global capital into China, and maintain strict market oversight. In corporate news, BYD dropped over -3% in Hong Kong following a report that Warren Buffett’s Berkshire Hathaway sold its entire stake in the electric-vehicle maker.
Japan’s Nikkei 225 Stock Index closed higher today, rebounding from the previous session’s losses as concerns over the Bank of Japan’s plan to offload its massive holdings of exchange-traded funds eased. Electronics stocks led the gains on Monday. The BOJ said on Friday that it would sell its exchange-traded fund holdings at a pace of about 620 billion yen per year by market value. Bloomberg reported that the BOJ’s ETF sales could begin early next year. However, at that rate, it would take more than a century to sell, suggesting limited market impact. Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory, said, “Investors overreacted to the BOJ’s announcement. And today, the market is rebounding.” The benchmark index was also supported by Wall Street’s record close on Friday and optimism surrounding new domestic policies. Meanwhile, Japan’s ruling party leadership race officially began on Monday, with the outcome likely to determine the nation’s next leader following Prime Minister Shigeru Ishiba’s decision to resign. Yoshimasa Hayashi, top government spokesperson and a contender to become the next prime minister, told Reuters in an interview on Sunday that the BOJ’s plan to gradually raise interest rates is largely aligned with the government’s stance on economic policy. Investor focus this week is on Japan’s PMI and Tokyo inflation data for September. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.75% to 24.47.
Pre-Market U.S. Stock Movers
Cryptocurrency-exposed stocks are moving lower in pre-market trading, with the price of Bitcoin down more than -2%. Strategy (MSTR) is down more than -3%. Also, MARA Holdings (MARA) is down about -4%, and Coinbase (COIN) is down over -3%.
Kenvue (KVUE) slumped more than -4% in pre-market trading after the Washington Post reported that the Trump administration plans to link the active ingredient in Tylenol to autism on Monday.
KLA Corp. (KLAC) fell over -1% in pre-market trading after Morgan Stanley downgraded the stock to Equal Weight from Overweight.
Metsera (MTSR) jumped about +60% in pre-market trading after the Financial Times reported that Pfizer was closing in on a potential $7.3 billion takeover of the company.
ASML Holding N.V. (ASML) rose more than +3% in pre-market trading after Morgan Stanley upgraded the stock to Overweight from Equal Weight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Monday - September 22nd
Firefly Aerospace (FLY), Cantaloupe (CTLP), US Gold (USAU), Genfit (GNFT), Golden Matrix (GMGI), Anixa Biosciences (ANIX), Anebulo Pharmaceuticals (ANEB), Bridgford (BRID).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
