U.S. Stock Futures Pause after Strong Monthly Performance

Market Snapshot

• Dow Jones Industrial Average futures (YM00) increased by 58 points, or 0.2%, to 35,315.
• S&P 500 futures gained 2 points, or 0.1%, reaching 4,557.
• Nasdaq 100 futures declined by 11 points, or 0.1%, to 15,663.

Yesterday's Market Performance

On Thursday, the stock market experienced significant gains, with the Dow Jones Industrial Average rising by 332 points, or 0.96%, reaching 34,907. The S&P 500 increased by 38 points, or 0.84%, closing at 4,505. The Nasdaq Composite also had a positive day, with a gain of 112 points, or 0.81%, reaching 13,926. This remarkable surge in the S&P 500 marked the best one-day rise since August 29.

Driving Factors

Several factors contributed to the market's positive performance yesterday:

1. ARM Holdings had an exceptional market debut, resulting in a surge of 25% in the stock price of this UK-based microchip designer.
2. Instacart announced an upward revision of its IPO range for next week, which generated excitement among investors.
3. Investors interpreted the European Central Bank's rate hike cautiously, potentially signaling an end to the bank's rate-hike campaign.
4. U.S. retail sales data exceeded expectations but revealed a concerning trend of increased spending on fuel rather than on other products.
5. China reduced its reserve requirement ratio by a quarter-point, further influencing market sentiments.

Potential Factors for Today

Today, investors will closely monitor the impact of the United Auto Workers' strike, which has targeted one plant each at major automakers Ford, General Motors, and Stellantis. Additionally, the expiration of $3.4 trillion in stock options may introduce volatility to the market. Historical data suggests that 10 out of the past 11 expiration days in September resulted in a lower closing for the S&P 500. Moreover, the economic calendar includes significant releases such as the Empire State manufacturing index, industrial production data, and a preliminary update on the University of Michigan's consumer sentiment index.