In the latest premarket activity, the broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) registered a slight decline of 0.1%, while the actively traded Invesco QQQ Trust ($QQQ) experienced a larger drop of 0.5%. This downturn comes amidst growing investor speculation regarding the potential timing and magnitude of an impending interest rate cut from the Federal Reserve, as market participants assess economic indicators and the impacts on financial markets. Meanwhile, futures on US stocks showed a mixed picture; S&P 500 Index futures dipped by 0.1%, although Dow Jones Industrial Average futures saw a modest uptick of 0.2%.
On the other hand, Nasdaq futures fell by 0.5% ahead of the commencement of regular trading hours. A key data point affecting investor sentiment came from the New York Federal Reserve’s Empire State Manufacturing Index, which for September surged to a reading of 11.5, a significant rebound from the minus 4.7 recorded in August.
This reading was also markedly better than the Bloomberg survey expectation of minus 4.0, indicating a potential recovery in the manufacturing sector that could influence the Fed's policy decisions. In the cryptocurrency space, bitcoin suffered a setback of 2.1%, with the ProShares Bitcoin Strategy ETF ($BITO) dropping 1.9% in premarket trading, reflecting ongoing price volatility. **Power Play:** The Financial Select Sector SPDR Fund (XLF) remained flat, showcasing a neutral day for financial stocks.
However, Direxion Daily Financial Bull 3X Shares ($FAS.US) noted a 1.4% rise, contrasting with its bearish counterpart, Direxion Daily Financial Bear 3X Shares ($FAZ), which fell by 1.2%. Notably, Synchrony Financial ($SYF) shares witnessed a nearly 2% decline ahead of market open, attributed to a downgrade by BTIG, shifting its rating from 'buy' to 'neutral'. **Winners and Losers:** Within the Health Care sector, the Health Care Select Sector SPDR Fund ($XLV) remained unchanged.
The Vanguard Health Care Index Fund ($VHT) showed a slight gain of 0.3%, while both the iShares US Healthcare ETF ($IYH) and iShares Biotechnology ETF ($IBB) were inactive during this period. AstraZeneca ($AZN) shares performed well, climbing 1.5% in premarket trading, following encouraging results from a phase 3 trial regarding its drug Imfinzi combined with Imjudo, indicating a clinically significant survival benefit for patients with unresectable hepatocellular carcinoma after four years. In the Consumer sector, the Consumer Staples Select Sector SPDR Fund ($XLP) edged up by 0.1%, contrasting with the Vanguard Consumer Staples Fund ($VDC), which remained dormant.
The iShares US Consumer Staples ETF ($IYK) also saw no action, while the Consumer Discretionary Select Sector SPDR Fund ($XLY) rose by 0.2%. Colgate-Palmolive ($CL) shares faced a downturn of 1.5% due to Wells Fargo’s downgrade from 'equal weight' to 'underweight'. In the Industrial sector, the Industrial Select Sector SPDR Fund ($XLI) advanced 0.4%, while the Vanguard Industrials Index Fund ($VIS) and iShares US Industrials ETF ($IYJ) saw no activity.
Alcoa ($AA) shares jumped by 1.6% before the market opened, as the aluminum manufacturer announced its decision to divest its stake in a joint venture with Saudi Arabian Mining (Ma'aden) in a substantial $1.1 billion transaction. From the Technology sector, the Technology Select Sector SPDR Fund (XLK) lost 0.7%, with the iShares US Technology ETF ($IYW) experiencing a dip of 0.5%.
The iShares Expanded Tech Sector ETF ($IGM.US), however, gained slightly by 0.01%. In semiconductor ETFs, the SPDR S&P Semiconductor ETF ($XSD) remained unchanged, while the iShares Semiconductor ETF ($SOXX) declined by 1.3%. A significant development was reported regarding Intel ($INTC) with its stock rising by 1.3% on news that the company has qualified for up to $3.5 billion in US government funding for semiconductor production linked to a confidential military program. In the Energy sector, the iShares US Energy ETF ($IYE) was inactive, while the Energy Select Sector SPDR Fund ($XLE) saw a slight increase of 0.4%.
Delek US Holdings ($DK) shares rose 1.4% in premarket trading following an upgrade by Mizuho Securities. Commodities experienced fluctuations as well, with the front-month US West Texas Intermediate crude oil climbing 1.1%, reaching $69.37 per barrel on the New York Mercantile Exchange. In contrast, natural gas prices dipped by 0.5% to $2.29 per 1 million British Thermal Units.
The United States Oil Fund (USO) advanced 0.1%, paralleled by the United States Natural Gas Fund (UNG), which also saw a 0.1% increase. Gold futures for December showed a slight decline nearly down by 0.1%, pricing at $2,608.60 per ounce on the Comex, while silver futures managed to increase by 0.7%, reaching $31.29 per ounce.
The SPDR Gold Shares ($GLD) dipped by 0.1%, and the iShares Silver Trust ($SLV) enjoyed a 0.8% gain. The financial markets reflect a landscape of volatility and cautious optimism, as traders remain vigilant amidst ever-evolving economic indicators, with the Federal Reserve’s monetary policy decisions looming heavily on market sentiment..