US Stock Futures Edge Up, But Oil Prices and Interest Rates Weigh
US stock index futures rose modestly ahead of the opening of the New York market on Monday (local time). Stock index futures are indicators that foreshadow upcoming market moves; as of 8:50 a.m. Eastern Time, Dow Jones Industrial Average futures were up 72 points (0.14%), S&P 500 futures rose 0.11%, and Nasdaq 100 futures gained 0.24%. The previous session, the New York market fell across the board under the weight of geopolitical uncertainty and rising Treasury yields. The S&P 500 dropped 0.8%, marking its biggest one-day decline since late August, while the Nasdaq Composite slid 0.9%.
Following that, semiconductor stocks, which bore the brunt of the previous day's selling, staged a rebound ahead of the open. Marvell Technology, Micron Technology, and Broadcom each rose about 1% in premarket trading, and Nvidia gained 0.7%. Nvidia announced the previous day that it was increasing its share buyback authorization by an additional $150 billion, its largest ever.
According to Anthropic's IPO prospectus reviewed by Reuters, the company grew rapidly over the past year, but its losses expanded as well. Anthropic is targeting a valuation of more than $2 trillion in its IPO. At OpenAI's developer event "DevDay" being held today, CEO Sam Altman is scheduled to speak and new AI announcements are expected.
Monetary policy variables also remain. According to CME's FedWatch, markets are pricing in a 70% probability that the Fed, led by Chair Kevin Warsh, will raise the benchmark rate at its October meeting. After the market opens today, the Labor Department's August Job Openings and Labor Turnover Survey (JOLTS) is due, and at least six Fed officials, including New York Fed President John Williams, are scheduled to speak.
Among individual stocks, Summit Therapeutics surged 18.4% in premarket trading after AstraZeneca agreed to invest $2 billion in a joint cancer therapy research partnership. Meanwhile, PepsiCo slipped 0.8% after JPMorgan downgraded the stock to "neutral" from "overweight."
