U.S. stock futures showed mixed results on Monday as investors prepare for a critical week featuring the U.S. presidential election, a Federal Reserve policy decision, and more corporate earnings releases. S&P 500 and Nasdaq 100 futures were up, while Dow futures dipped slightly, signaling cautious optimism ahead of the anticipated market-moving events.
1. Futures Mixed as Markets Await Major Events
Futures trading hovered near the flatline early Monday, reflecting investor caution ahead of this week’s packed agenda. By 03:30 ET, Dow futures were down by 30 points, or 0.1%, while S&P 500 futures and Nasdaq 100 futures climbed 0.2%. Wall Street closed the previous week in positive territory, buoyed by strong earnings from Amazon (NASDAQ), which offset a disappointing October jobs report. The U.S. added just 12,000 jobs last month, well below expectations, with analysts attributing the slowdown to hurricanes and recent labor strikes.
2. U.S. Election Just One Day Away
The U.S. presidential election looms large, with Republican candidate Donald Trump and Democratic rival Kamala Harris locked in a tight race. Both candidates made their final appeals to voters in key battleground states over the weekend. A recent Iowa poll showed Harris with a slight lead, fueled by strong support among women voters. However, other polls show a tight race, with Harris holding slight leads in Nevada, North Carolina, Georgia, and Wisconsin, while Pennsylvania and Michigan remain highly competitive. In Arizona, Trump leads by three points, underscoring the unpredictable nature of the outcome.
3. Key Earnings Reports Expected This Week
Around 20% of S&P 500 companies are set to report quarterly earnings this week. So far, 70% of companies have announced their results, with three-quarters exceeding per-share earnings estimates. However, this beat rate is slightly below the five-year average. Earnings highlights this week include Super Micro Computer (NASDAQ), which recently saw a drop in share price after losing its auditor, EY. Super Micro is a major partner of Nvidia (NASDAQ) and has benefited from AI-driven growth. Qualcomm (NASDAQ), Moderna (NASDAQ), and CVS Health (NYSE) are also among companies scheduled to report.
4. Federal Reserve Decision on Interest Rates
The Federal Reserve is expected to announce a 25-basis point rate cut at the conclusion of its two-day meeting on Thursday. Friday’s jobs report, which showed a cooling labor market, has solidified expectations for this smaller cut following a larger reduction in September. Investors will be watching for insights from Fed Chair Jerome Powell on whether the Fed plans a slower pace of cuts moving forward. Analysts at Morgan Stanley do not anticipate Powell will commit to a specific rate path, expecting instead a “data-dependent” approach.
5. Oil Prices Climb on OPEC+ Decision
Oil prices rose on Monday after OPEC+ postponed a planned production increase amid demand concerns. Brent crude climbed 2.1% to $74.60 per barrel, while WTI futures rose 2.3% to $71.06. OPEC+ announced on Sunday that it would delay its planned output increase of 180,000 barrels per day until at least January, marking the second time it has extended cuts as it monitors global demand trends.
As investors brace for this action-packed week, all eyes remain on the U.S. election, the Federal Reserve’s decision, and the ongoing corporate earnings season for signals on the direction of the markets.
