Stock futures were lower Tuesday as September’s selling pressures took hold of Wall Street following gains seen in the previous session. Futures tied to the Dow Jones Industrial Average slipped by 180 points, or 0.5%. S&P 500 futures dropped 0.6%, along with Nasdaq-100 futures. Those moves would add to the market’s losses for the month. Entering Tuesday’s session, the Nasdaq Composite was down 5.4% in September, while the S&P 500 and Dow had lost 3.8% and 2.1%. Among the catalysts pushing stocks lower this month is the Federal Reserve warning that it sees fewer rate cuts next year. The news pushed the benchmark 10-year Treasury yield to levels not seen since 2007. Investors this week are also grappling with negotiations in Washington, as lawmakers hope to avert a government shutdown that could take place as early as Oct. 1 if Congress doesn’t agree on a spending bill. Upcoming seasonal market tumult could present a window for investors. Though October is known as the “jinx month” because of the 1929 and 1987 crashes, it also has a reputation as a “bear killer,” according to the “Stock Trader’s Almanac.” “While October tends to be among the more volatile months of the year, it’s also the month where we usually see great buying opportunities, because it’s just before November and December, which are seasonally strong periods of the year for the markets,” said Mary Ann Bartels, chief investment strategist at Sanctuary Wealth. On the economic data front, investors will keep an eye out Tuesday for August’s final building permits report before the bell, as well as new home sales data for last month later that morning. The Conference Board’s consumer confidence report for September is also due. Wall Street is coming off a winning session, with the major averages snapping four-day losing streaks. The 10-year U.S. Treasury yield fell Tuesday, pulling back from a 15-year high reached the prior day. The 10-year Treasury yield was down by more than than 4 basis points at 4.499%, easing slightly from multiyear highs reached earlier in the week. The 2-year Treasury yield was 1 basis point lower at 5.121%. In the previous session, the 10-year Treasury yield rose as high as 4.548%, its highest level since Oct. 18, 2007 when it yielded as high as 4.570%. Asia-Pacific markets are mixed as investors look toward inflation data from across the region this week. Singapore and Australia are expected to report inflation figures for August this week, while Japan will release inflation data for the Tokyo region. The capital region’s inflation data is seen as a leading indicator of nationwide trends. In Australia, the S&P/ASX 200 rose 0.11%, reversing earlier losses and ending at 7,076.5. Japan’s Nikkei 225 climbed 0.85% and the Topix was up 0.39%, rebounding from losses last week and closing at 32,678.62 and 2,385.5 respectively. South Korea’s Kospi slid 0.49%, closing at 2,495.76 and the Kosdaq tumbled 2.12%, finishing at 839.17 and marking a seven-day losing streak. Hong Kong’s Hang Seng index slipped 1.65% in its final hour of trade, with mainland Chinese markets also in negative territory. The benchmark CSI 300 was down 0.65% and ended at 3,714.6. Oil prices slipped Tuesday morning amid concerns that fuel demand will be crimped by major central banks holding interest rates higher for longer, even with supply expected to be tight. Brent crude futures were down 94 cents, or 0.9%, at $92.41 a barrel and U.S. West Texas Intermediate crude futures were trading 86 cents lower, or nearly 1.0%, at $88.82. Gold prices fell on Tuesday, as bullion’s appeal dimmed in the face of a stronger U.S. dollar and higher Treasury yields, while investors strapped in for key inflation data this week for further rate guidance on U.S. rates. Spot gold edged down 0.2% to $1,912.79 per ounce, its lowest since Sept. 15, while U.S. gold futures fell 0.3% to $1,931.10.
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