U.S. stock futures jumped Monday as Wall Street tried to recover some of the steep losses suffered last week. S&P 500 futures rose 0.6%, while Nasdaq 100 futures climbed nearly 0.7%. Futures tied to the Dow Jones Industrial Average popped 255 points, or 0.2%. “We don’t think the rally is being spurred by any specific news items out since the Fri close but instead some (modest) dip buying driven in large part by oversold conditions and monetary support anticipation,” Adam Crisafulli of Vital Knowledge wrote. The stock market suffered serious losses to kick off its first trading week of September, a historically tough month for equities. The S&P 500 tumbled 4.3%, registering its worst week since March 2023. The Nasdaq Composite plunged 5.8% for its worst weekly performance since 2022, while the 30-stock Dow dropped 2.9%. These declines came after the August jobs report stoked fears of a slowing labor market. Economic data released Friday revealed that nonfarm payrolls grew by just 142,000, missing the 161,000 gain expected by economists surveyed by Dow Jones. On the other hand, the unemployment rate ticked lower to 4.2%, as economists had expected. This week, investors will watch out for two key inflation reports that could further inform the Federal Reserve’s decision at its next open market committee meeting. August’s consumer and producer price reports are slated for release on Wednesday and Thursday morning, respectively. The market has now priced in a 71% chance that the Fed could cut rates by 25 basis points at its next meeting and just a 29% chance of a 50-basis-point rate cut, according to CME Group FedWatch Tool. Treasury yields were higher Monday as investors look ahead to fresh inflation prints following a series of weaker-than-expected U.S. economic data releases. The yield on the 10-year Treasury was 4 basis points higher at 3.753%. The 2-year Treasury yield rose nearly 5 basis points to 3.698%. Asia-Pacific markets fell on Monday, with Hong Kong’s Hang Seng Index leading losses in the region, following the weaker-than-expected U.S. jobs report on Friday. China’s inflation rate grew 0.6% year on year, lower than the 0.7% expected from economists polled by Reuters. On a month-on-month basis, the CPI rose 0.4%, lower than the 0.5% expected. The HSI dropped 1.77% as of the final hour of trading, while mainland China’s CSI 300 fell 1.19% to 3,192.95, marking a seven-month low. The Nikkei 225 closed 0.48% lower after paring losses to close at 36,215.75, while the broad-based Topix fell 0.68% to close at 2,579.73. The Japanese yen weakened 0.65% against the U.S. dollar to 143.20, coming off a nine-month low achieved on Friday. South Korea’s Kospi slipped 0.33% to 2,535.93 while the small cap Kosdaq was up 1.11% to 714.46. Australia’s S&P/ASX 200 closed 0.32% lower at 7,988.1. U.S. crude oil futures rebounded nearly 1% on Monday after posting the worst week since October 2023. The U.S. benchmark has fallen 15.8% so far in the third quarter while the Brent global benchmark has fallen more than 16.6%. “We have lost 400 million barrels of financial demand since early July,” Daan Struyven, oil research head at Goldman Sachs, told CNBC’s “Squawk Box Asia” on Monday. “That is basically 7 million barrels per day of financial demand that we lost.” West Texas Intermediate October contract: $68.13 per barrel, up 46 cents, or 0.68%. Year to date, U.S. crude oil has fallen 4.8%. Brent November contract: $71.56 per barrel, up 50 cents, or 0.7%. Year to date, the global benchmark has pulled back 7%. Gold prices dipped on Monday as the dollar ticked higher, while investors looked towards this week’s U.S. inflation data to gauge the size of an expected Federal Reserve rate cut. Spot gold fell 0.1% to $2,495.04 per ounce by 1027 GMT. U.S. gold futures were unchanged at $2,524.50. The dollar index rose 0.5%, making dollar-priced gold less appealing to holders of other currencies. Bullion, which offers no interest of its own, tends to thrive in a low-interest-rate environment.
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