Investing.com — U.S. stocks edged lower Monday, on the final day of a positive September as investors look to comments from Fed Chair Jerome Powell for clues over future interest rate cuts.
By 12:58 ET (16:58 GMT), the was down 144 points, or 0.3%, the index was flat, and the index was 0.1% higher.
September–historically the weakest month for the stock market–is on course to be a positive month, in the wake of the decision of the US central bank to cut interest rates by an outsized 50 basis points.
The blue chip has gained 1.8% month-to-date, ending Friday’s session at a new record high, and the broad-based rose 1.6%, while the tech-heavy Nasdaq advanced 2.3% in September.
Powell set to speak
This optimism is largely based on investors expecting the Federal Reserve to roll out another hefty 50-basis point interest rate cut at its next meeting on the back easing price pressures and weakening in labor demand.
With this in mind traders are now turning their attention to comments on the outlook for the economy from at the National Association for Business Economics annual meeting in Tennessee later in the session.
Additionally, the week ends with the release of the October report on Friday, with economists expecting the US economy to have added 144,000 jobs.
Ahead of Powell’s speech, Atlanta Fed President Raphael Bostic signaled on Monday that he was open to backing another 50 basis point rate cut should the labor market show unexpected weakness.
Stellantis cuts annual forecasts; Nio jumps on cash injection
On the corporate front, Stellantis (NYSE:) stock slumped over 14% after the auto giant, known for brands such as Chrysler, Dodge and Jeep, slashed its annual forecasts and said it would burn through more cash than expected, citing worsening trends in the industry, higher costs to overhaul its U.S. business and Chinese competition on electric vehicles.
AT&T (NYSE:) stock fell 0.3% after the telecom giant announced Monday that it plans to sell its 70% ownership in satellite TV provider DirecTV to private equity firm TPG for $7.6 billion, marking its exit from a business that has seen dwindling returns.
CVS Health (NYSE:) stock rose 1.5% after the Wall Street Journal reported that Glenview Capital, a major shareholder of the pharmacy company, is expected to meet with CVS’s leadership to propose fixes for the struggling business.
Insurance brokerage Marsh & McLennan (NYSE:) said on Monday it has agreed to buy smaller rival McGriff Insurance Services for $7.75 billion, as the industry gears up for higher spending on policies from businesses amid an improving economic outlook.
Nio Inc Class A ADR (NYSE:), meanwhile, rallied 7% after the Chinese EV maker said that its Nio China business is set to receive a 13.3B yuan investment from Nio, with strategic investors provided about 3.3B yuan.
Crude gains as Israel escalates attacks
Oil prices edged higher Monday on the possibility of a widening Middle East conflict after Israel stepped reportedly told the U.S. that it was preparing for a limited ground invasion of Lebanon as part of the next phase of its conflict with Iranian-backed Hezbollah.
Both contracts fell last week as demand worries increased after fiscal stimulus from China, the world’s second-biggest economy and top oil importer, failed to reassure market confidence.
(Peter Nurse contributed to this story)
