Updated 2 min read
US stock futures edged higher on Monday as investors set their sights on inflation data later this week to provide a reality check on the chances of a jumbo interest-rate cut in September.
Dow Jones Industrial Average (YM=F) ticked up 0.1%, while those on the S&P 500 (ES=F) moved up 0.2%. Contracts on the Nasdaq 100 (NQ=F) were slightly more upbeat, trading roughly 0.4% higher, after stocks finished last week on a down note.
Wall Street is already looking ahead to key inflation reports later this week: the producer price index (PPI) on Wednesday and the consumer price index (CPI) on Thursday. Together, the data will offer fresh insight into the strength of the economy after last week’s softer-than-expected August jobs print, as questions about recession start to emerge.
Given that, the reports will test markets’ total conviction that the Federal Reserve will lower interest rates at its meeting next week. The debate now centers on how deep policymakers will cut, amid rising expectations for a bumper “catch-up” move of 50 basis points, rather than 25 basis points.
Otherwise, this week’s economic calendar is light, though the Bureau of Labor Statistics revision to earlier months’ jobs data on Tuesday will likely be more closely watched than usual.
In the meantime, political drama is grabbing attention in the runup to the first full trading week in the historically slowest month of the year. In Europe, France’s government is on the brink of collapse with its prime minister, Francois Bayrou, expected to lose a parliamentary vote of confidence later in the day. Japan has already lost its prime minister after Shigeru Ishiba resigned on Sunday.
The moves pushed two key economies into higher uncertainty as President Trump’s tariffs shake up the global trade environment.
Read more: The latest on Trump’s tariffs
Treasury Secretary Scott Bessent said the US would be forced to give rebates if the Supreme Court fails to uphold many of those tariffs. An appeals court found most of them to be illegal and the president had overstepped his authority.
With earnings season all but over, the week ahead brings few reports, with Oracle (ORCL), Adobe (ADBE), and Kroger (KR) the highlights.
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US raid on Hyundai plant leaves Korean companies reeling
Bloomberg reports:
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EchoStar stock soars after $17 billion spectrum sale to Musk’s SpaceX
Elon Musk-led SpaceX (SPAX.PVT) has agreed to buy EchoStar (SATS) wireless spectrum licences for its Starlink satellite network, the companies said on Monday.
Shares of DISH parent EchoStar rocketed over 20% higher in premarket trading, amid hopes the deal would put to rest FCC concerns about its 5G expansion.
Reuters reports:
The deal comes months after the Federal Communications Commission questioned EchoStar’s compliance with buildout extensions and its use of mobile-satellite service spectrum, raising concerns about whether it was meeting its obligations to deploy 5G in the US. …
EchoStar in August sold some wireless spectrum licenses to AT&T (T) for $23 billion, its first move to resolve the regulatory probe. …
Under the terms of the agreement, SpaceX will pay up to $8.5 billion in cash and issue up to $8.5 billion in stock. SpaceX has also agreed to cover roughly $2 billion in interest payments on EchoStar’s debt obligations through late 2027.
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StanChart expects Fed to cut rates by 50 bps next week
Standard Chartered has doubled its earlier projection for a 25 basis point reduction in interest rates next week, following a soft August jobs report.
The brokerage now expects the Federal Reserve to lower rates by a bumper 50 basis points, or a half percentage point, from its current level of 4.5%.
Reuters reports:
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Good morning. Here’s what’s happening today.
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Premarket trending tickers: Robinhood, Tesla and Strategy
Here’s a look at some of the top stocks trending in premarket trading:
Robinhood (HOOD) stock rose 7% before the bell on Monday following news that it will replace casino operator Caesars Entertainment in the benchmark S&P 500 (^GSPC), marking a pivotal moment for the financial technology sector as the retail trading platform joins the ranks of the most influential US.
Tesla (TSLA) stock rose more than 1% in premarket following the news that Tesla’s board asked investors to approve a new pay package for Musk that could be worth as much as $1 trillion over the next 10 years. News also broke on Monday that Tesla’s US market share had dropped to lowest since 2017.
Strategy (MSTR) stock fell 1% after the price of Bitcoin (BTC-USD) slipped to around $111,500 from above $113,000 at one point on Friday. The company is one of the largest corporate holders of Bitcoin.
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Inflation in focus as Sept. Fed meeting nears: What to watch this week
With the August jobs report in the rear-view mirror, this week brings readings on wholesale and consumer inflation for the month — both crucial to the Federal Reserve’s decision making.
Yahoo Finance’s Jake Conley and Myles Udland report:
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Asian shares push up following news of Japan’s PM stepping down
Reuters reports:
Asian shares mostly rose with Japan’s benchmark jumping higher in Monday morning trading, despite the looming political uncertainty after Prime Minister Shigeru Ishiba announced last night he was stepping down as prime minister and head of his party.
Analysts said his announcement was expected for some time and welcomed it as moving things forward, although uncertainty remains as an election at the ruling Liberal Democratic Party, or LDP, will need to be held, with several legislators stepping forward as candidates.
“Markets may react short-term to the temporary uncertainty of lame-duck leadership, but this may resolve once a new leader is chosen. Meanwhile, the LDP’s position as a minority leading party is unlikely to change anytime soon, and as such compromise will be the name of the policy-making game,” said Naomi Fink, chief global strategist at Amova Asset Management.
Japan’s benchmark Nikkei 225 (^N225) gained 1.4% in morning trading to 43,630.54. South Korea’s Kospi (^KS11) gained 0.2% to 3,211.36. Australia’s S&P/ASX 200 (^AXJO) lost 0.3% to 8,845.50
Hong Kong’s Hang Seng (^HSI) edged up 0.3% to 25,487.02, while the Shanghai Composite rose 0.2% to 25,487.02.
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Gold hovers near all-time record as Fed rate cut expectations rise
Gold (GC=F) pushed back to near record highs as a weak August jobs report, coupled with expectations of a Federal Reserve rate cut, drew investors toward the precious metal.
Bloomberg reports:
