U.S. stock futures ticked down leading up to the final trading session of what’s shaping up to be a winning month and quarter. Futures tied to the Dow Jones Industrial Average lost 56 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures inched down 0.2% and 0.3%, respectively. Those moves come after the major averages notched their third consecutive week of gains. Monday marks the final trading day for September and the third quarter, which are both on track to conclude with gains despite some pain points. Markets had a rough start to what is historically the weakest month for the stock market, but rebounded as September went on with the Federal Reserve cutting interest rates by a super-sized half point. Month to date, the Dow and the S&P 500 are now up 1.8% and 1.6%, respectively. The tech-heavy Nasdaq has advanced 2.3% in September. The Dow has led the way this quarter, climbing more than 8%. The S&P 500 and Nasdaq have added more than 5% and 2%, respectively, since July began. Looking ahead, October has a troubling history for markets. It’s known as a time of extreme volatility with some of the more notable Wall Street drawdowns occurring during the month. Still, investors are excited about equities into the final stretch of the year after their rallies thus far. Canaccord Genuity analyst Michael Welch noted that the fourth quarter is typically the strongest for stocks and ends positively in more than three out of every four years. “The market navigated the typically challenging September better than we anticipated,” Welch said. “Now, as we enter a stronger seasonal period, coupled with the start of a Fed easing cycle and favorable technical conditions — we expect these will provide a tailwind into the end of the year.” “We believe now is not the time to fight the Fed or the tape,” he added. Instead, “it is an opportunity to position for a potential fourth-quarter rally, especially on any pullback.” U.S. Treasury yields advanced on Monday as investors considered the state of the economy and outlook for inflation after the latest key data release. The yield on the 10-year Treasury added more than 3 basis points to 3.781%. The 2-year Treasury yield was last at 3.617% after rising by more than 5 basis points. Stocks in mainland China surged over 8% for its best day in 16 years while Japan’s Nikkei 225 tumbled 4.8% on Monday as investors assessed key economic data from the two countries. Mainland China’s CSI 300 rallied 8.48%, powered by health-care and tech stocks and closing at 4,017.85. This marks a nine-day winning streak, its best day since September 2008 and its highest point since August 2023. Hong Kong’s Hang Seng index rose 3.09% as of its final hour, powered by consumer stocks. The Hang Seng Mainland Properties Index soared 8.11%. Markets on the mainland will only be trading on Monday, before closing for the rest of the week due to the Golden Week holiday. In Japan, the Nikkei closed at 37,919.55, led by losses in real estate stocks, while the largest loser on the index was department store holding company Isetan Mitsukoshi Holdings, down 10.64%. The broad-based Topix fell 3.47% and ended at 2,645.94. Australia’s S&P/ASX 200 climbed 0.7%, reaching an all-time closing high of 8,269.8. South Korea’s Kospi fell 2.13% to 2,593.27, and the small-cap Kosdaq slipped 1.37% and closed at 763.88. Oil prices were steady on Monday and on track to fall for the third month in a row as a strong supply outlook and questions around demand outweighed fears that Israeli strikes in Lebanon and Yemen could escalate conflict in the Middle East. Brent crude futures for November delivery, expiring on Monday, lost 10 cents to $71.88 a barrel as of 0933 GMT. The more active December contract rose 6 cents to $71.60. U.S. West Texas Intermediate (WTI) futures lost 10 cents to $68.08 a barrel. Both benchmarks had earlier gained more than $1. Gold prices eased on Monday but hovered near the record peak hit last week, setting bullion on track for its best quarter in over eight years following a jumbo U.S. rate cut decision and expectations of another outsized reduction in November. Spot gold was down 0.2% at $2,653.38 per ounce, as of 0404 GMT, owing to a rise in the U.S. dollar. A stronger dollar makes gold less attractive for other currency holders.
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