U.S. stock index futures were higher on Monday, the last day of September, as investors watched trade developments between the U.S. and China.
Around 7:15 a.m. ET, Dow
Jones Industrial Average futures indicated a gain of 54.75 points at
the open. S&P 500 and Nasdaq 100 futures also traded higher.
Wall Street ended lower last week on reports that the White House is considering limiting U.S. investment into China, including a possible de-listing of Chinese companies from U.S. exchanges, in a further escalation of the ongoing trade dispute between the world’s two largest economies. However, spokespeople had denied that the U.S. was considering such a move.
U.S. and China trade delegations are due to meet on
Oct. 10 as both sides try to move closer to a deal. Both countries have
slapped tariffs on billion of dollars worth of their goods, dampening
expectations for economic and corporate profit growth.
indexes were headed for a mixed monthly performance. The Nasdaq
Composite was down slightly for September entering Monday’s session
while the S&P 500 and Dow were up more than 1%.
On the data front, Chicago PMI figures for September are due at 8:45 a.m. ET and Dallas Fed manufacturing index data will be published at 9:30 a.m. ET.
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Stocks were set to edge lower on Wednesday, even after House Speaker Nancy Pelosi said she will launch a formal impeachment inquiry on President Donald Trump.
As of 7:09 a.m. ET
Wednesday, Dow Jones Industrial Average futures implied a loss of more
than 10 points at the open. S&P 500 and Nasdaq 100 futures also
indicated slight opening losses.
On Tuesday, the S&P 500 and
Nasdaq Composite posted their biggest one-day declines in a month in
anticipation of the impeachment inquiry. The Dow Jones Industrial
Average also dropped 142 points, or 0.5%.
Stocks have surged
since Trump was elected as the administration has implemented policies
such as tax cuts and decreased regulation. The Dow has surged more than
46% since Trump’s election. Stocks have previously struggled when a
president faces the possibility of impeachment.
The S&P 500
was down about 20% at one point from its high in 1998 as independent
counsel Kenneth Starr ramped up his investigation of President Bill
Clinton for perjury and obstruction of justice, according to CFRA. The
market bottomed as the House began impeachment proceedings and later
recovered all losses to reach a then-record high.
Stocks opened slightly lower on Wednesday as a key decision from the Federal Reserve is expected this afternoon.
The Dow Jones Industrial Average fell just a fraction of a percent. The S&P 500 and Nasdaq Composite both slipped about a third of one percent.
The Fed is expected to cut rates by 25 basis points. This would be the bank’s second rate cut in a decade, after the central bank decided to lower the Fed Funds Rate to a range of 2.0%-2.25% in July. Chairman Jerome Powell will address the media on Wednesday at 2:30 p.m. ET.
Treasury yields fell ahead of the Fed’s announcement. The benchmark 10-year rate dipped to 1.77% from around 1.8%. The 2-year yield traded at 1.7%.
The Fed meeting takes place a couple of days after President Donald Trump called the central bank “boneheads” and asked for zero or even negative rates. The meeting also takes place as China and the U.S. try to reach a deal to end their ongoing trade war.
Trump said on Wednesday that a deal could come soon. China and the U.S. are expected to meet next month. The trade war has dampened the outlook for global economic growth and corporate profit expansion.