September S&P 500 E-Mini futures (ESU25) are up +0.26%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.34% this morning, pointing to a higher open on Wall Street as investors boosted their expectations for how much the Federal Reserve will cut interest rates this year.
This week, investor focus is squarely on the release of key U.S. inflation data.
In Friday’s trading session, Wall Street’s major equity averages closed in the red. Lululemon Athletica (LULU) tumbled over -18% and was the top percentage loser on the S&P 500 and Nasdaq 100 after the athleisure company cut its full-year guidance for the second time in a row. Also, Kenvue (KVUE) slumped more than -9% after the Wall Street Journal reported that the Department of Health and Human Services plans to release a report linking autism to pregnant women’s use of the company’s Tylenol painkiller. In addition, Copart (CPRT) fell over -2% after reporting weaker-than-expected FQ4 revenue. On the bullish side, Broadcom (AVGO) surged over +9% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the semiconductor and software company posted upbeat FQ3 results and issued above-consensus FQ4 revenue guidance. Bloomberg also reported that the chipmaker partnered with OpenAI to make AI accelerators.
The U.S. Labor Department’s report on Friday showed that nonfarm payrolls rose by 22K in August, weaker than expectations of 75K. Also, the U.S. unemployment rate ticked up to a 3-3/4-year high of 4.3% in August, in line with expectations. In addition, U.S. August average hourly earnings rose +0.3% m/m and +3.7% y/y, in line with expectations.
“Bad news for employment is good news for investors wanting lower rates. A September cut is a near certainty, and October is increasingly in play,” said David Russell at TradeStation.
Chicago Fed President Austan Goolsbee said on Friday that he remains undecided about what stance to take at the September meeting, pointing to upcoming inflation data. “I want to get more information. I’m still undecided as…
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