Market Update: Key Insights on SPY, QQQ, and Employment Data Impact
11 months ago

In the latest trading session, the broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) experienced a notable investment uptick of 0.3%. Concurrently, the actively traded Invesco QQQ Trust ($QQQ) also saw a rise of 0.5% during Friday's premarket activity, setting the stage for an important employment report that could significantly influence future interest rate reductions. Stock futures in the US showed a positive trend, with S&P 500 Index futures climbing 0.3%, the Dow Jones Industrial Average futures improving by 0.2%, and Nasdaq futures advancing 0.5% as traders anticipated the opening of regular trading hours. The report detailing the employment situation for September is scheduled to be released at 8:30 am ET, a critical moment for market analysts and investors alike.

Meanwhile, the Baker Hughes domestic oil-and-gas rig count data is expected at 1 pm ET, offering further insights into the energy sector's landscape. John Williams, President of the Federal Reserve Bank of New York, will be addressing the market at 9 am ET, an event that can swipe investor sentiment in either direction. In the cryptocurrency arena, bitcoin increased by 0.5%, and the ProShares Bitcoin Strategy ETF ($BITO) similarly rose by 0.4% in premarket activity, reflecting a potential shift in digital asset dynamics amidst broader economic signals. Turning to sectors, the Industrial Select Sector SPDR Fund ($XLI) edged up by 0.1%, while other funds like the Vanguard Industrials Index Fund ($VIS) and the iShares US Industrials ETF (IYJ) remained inactive throughout this premarket session. The airline sector faced turbulence, most notably Spirit Airlines ($SAVE), whose shares tumbled over 34% prior to Friday’s trading after reports emerged regarding the company's considerations of a potential bankruptcy filing—a dramatic development that underscores the ongoing challenges in the aviation industry. In the health care sector, the Health Care Select Sector SPDR Fund ($XLV) achieved a minor gain of 0.01%.

Conversely, the Vanguard Health Care Index Fund ($VHT) saw a decline of 0.1%, and the iShares US Healthcare ETF ($IYH) fell by 1.6%, illustrating a mixed performance in this crucial industry segment. The iShares Biotechnology ETF ($IBB) was inactive during this timeframe. Positive news came from Summit Therapeutics ($SMMT), with shares rising nearly 8% premarket after the company announced that it has completed enrollment for its late-stage HARMONi clinical trial across North America, Europe, and China, with topline results expected in mid-2025—an exciting development for stakeholders. In consumer markets, the Consumer Staples Select Sector SPDR Fund ($XLP) climbed 0.2%.

Yet the Vanguard Consumer Staples Fund ($VDC) remained inactive, alongside the iShares US Consumer Staples ETF ($IYK). However, the Consumer Discretionary Select Sector SPDR Fund ($XLY) gained 0.7%, illustrating a more dynamic consumer sentiment. The VanEck Retail ETF ($RTH) and SPDR S&P Retail ETF ($XRT) displayed differing patterns, with the latter up by 1%. Rivian Automotive ($RIVN) encountered challenges, seeing its shares down by over 8% pre-opening after the company revised its 2024 production targets downward due to component shortages, a reflection of ongoing supply chain issues. In the energy sector, the iShares US Energy ETF ($IYE) increased by 0.9%, while the Energy Select Sector SPDR Fund ($XLE) rose 0.7%, indicating positive momentum in energy stocks.

Notably, Calumet (CLMT) saw its stock increase by 5.3% after announcing a substantial $150 million asset sale and lease-back deal with Stonebriar, highlighting strategic moves within the industry. The technology space remained lively as well, with the Technology Select Sector SPDR Fund (XLK) gaining 0.4% and the iShares US Technology ETF ($IYW) rising by 1%.

Certain semiconductor ETFs, including the iShares Semiconductor ETF ($SOXX), showed modest growth with an increase of 0.7%. In corporate news, Amkor Technology ($AMKR) recorded nearly a 5% premarket gain as it announced a partnership with Taiwan Semiconductor Manufacturing ($TSM) to enhance packaging and testing capabilities in Arizona—a collaboration that may drive innovation in the tech industry.

Taiwan Semiconductor's stock slightly edged down by 0.2%. In finance, there was a slight retreat for the Financial Select Sector SPDR Fund (XLF), dipping 0.3%. Direxion Daily Financial Bull 3X Shares ($FAS) enhanced by 0.7%, contrasted by its bearish counterpart, which declined by 0.3%. In the realm of digital technologies, HIVE Digital Technologies ($HIVE) shares saw an increase of 1% after reporting the mining of 112 bitcoins in September, showcasing a rise of 1.4% in its holdings compared to August, thereby reflecting a healthy growth trajectory in this frontier market. Commodity markets also exhibited activity.

West Texas Intermediate crude oil climbed 1.5% to reach $74.81 per barrel on the New York Mercantile Exchange, while natural gas increased by 0.8%, priced at $2.99 per million British Thermal Units. The United States Oil Fund (USO) and the United States Natural Gas Fund (UNG) both rose by 1.4% as well, signaling stronger investor confidence in energy commodities. In precious metals, December gold futures marginally gained 0.03%, averaging $2,680.10 an ounce on the Comex, while silver futures declined 0.3% to $32.38, reflecting fluctuating interests in these traditional safe havens.

SPDR Gold Shares ($GLD) grew by 0.1%, while iShares Silver Trust ($SLV) climbed 0.3%, revealing investor positioning in anticipation of market shifts..

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