Futures on the S&P 500, Dow and NASDAQ 100 traded in a holding pattern below neutral levels this morning, marking time ahead of an expected U.S. interest rate cut. In the background, lingering concerns about U.S.-China trade tensions—with working-level negotiators set to resume talks ahead of higher-level meetings in October—contributed to investor caution.
Europe's STOXX 600 rebounded from a drop, with gains in telecom stocks offsetting declines in household goods and financial shares—the latter being weighed down by an increased outlook for lower interest rates.
Earlier, in the Asian session, regional indices ended mixed, with South Korea’s KOSPI (+0.41%) outperforming and China’s Shanghai Composite (+0.25%) ranking second. Australia’s S&P/ASX 200 (-0.2%) led the session’s losses.
Meanwhile, oil prices extended Tuesday's steep slide that pared about half of Monday's spike, after Saudi Arabia moved to reassure markets over supply recovery.
On Tuesday, the S&P 500 gained 0.26%, weighed down by Energy stocks (-1.47%) before Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman announced the country was repairing its oil facilities and would restore full output capacity by the end of the month. Real Estate shares fared as the session’s outperformers (+1.39%).
Meanwhile, the yield on 10-year Treasurys tumbled for the third straight day, as investor appetite for government bonds surged ahead of expected monetary policy easing. Technically, the three-day drop followed the test of the 100 DMA’s resistance below the downtrend line since November.
The dollar gained against the yen but remained below yesterday’s highs of a shooting star’s resistance. It still hovered above the 100 DMA and the top of a falling channel, demonstrating how crucial the next move could be for the ongoing trend.
WTI prices slightly extended yesterday’s 5.66% plunge but remained above yesterday’s lows, suggesting support.
Technically, the wild swings of the initial knee-jerk reaction—seen on both the U.S. benchmark and the global benchmark, Brent—may solidify into a stable short-term uptrend after establishing an ascending series of peaks and troughs.
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