In the latest premarket activities, the broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) experienced a modest increase of 0.1%. Similarly, the actively traded Invesco QQQ Trust (QQQ) saw a gain of 0.2%. Investors are currently analyzing potential implications regarding the Federal Reserve's interest rate cut anticipated later today, indicative of shifting market dynamics as economic conditions may lead to changes in monetary policy.
Moreover, US stock futures reflected positive momentum, with S&P 500 Index futures increasing by 0.1%, Dow Jones Industrial Average futures rising 0.2%, and Nasdaq futures showing a gain of 0.2% as markets poised for the commencement of regular trading hours. Highlighting shifts in the real estate market, US mortgage applications surged by 14.2% for the week ending September 13.
This significant rise was primarily driven by a decrease in mortgage rates, with refinancing applications escalating by 24% and new home applications experiencing a 5% increase, as detailed by data released from the Mortgage Bankers Association on Wednesday. The average interest rate for 30-year fixed-rate mortgages fell to 6.15%, marking the lowest level since September 2022.
Additional economic indicators will soon be unveiled, with housing starts and permits data for August expected at 8:30 am ET. Furthermore, the Atlanta Fed's Business Inflation Expectations report will be disseminated at 10 am ET, followed by the weekly domestic petroleum inventories report set for 10:30 am ET.
The Federal Reserve is anticipated to announce its rate decision at 2 pm ET, with Fed Chair Jerome Powell scheduled to conduct a press conference at 2:30 pm ET, providing insights into the central bank's perspective on inflation and interest rates. In the cryptocurrency sphere, Bitcoin’s price dipped by 0.1%, while the ProShares Bitcoin Strategy ETF (BITO) saw a decline of 0.4%, reflecting broader market hesitancy.
Turning to sector performances, the Industrial Select Sector SPDR Fund (XLI) experienced a hike of 0.3%. Meanwhile, the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) remained inactive during this period. A noteworthy development was reported from Intuitive Machines (LUNR), with shares increasing by over 49% as news broke regarding the US National Aeronautics and Space Administration (NASA) awarding the company a Near Space Network contract with a potential maximum value reaching up to $4.82 billion.
In the healthcare sector, the Health Care Select Sector SPDR Fund (XLV) remained flat while other associated funds such as the Vanguard Health Care Index Fund (VHT), the iShares US Healthcare ETF (IYH), and the iShares Biotechnology ETF (IBB) showed inactivity. A silver lining appeared for MannKind (MNKD), which reported a premarket gain of 2.1% after receiving clearance from Japan’s Pharmaceuticals and Medical Devices Agency to commence a phase 3 trial for its Clofazimine Inhalation Suspension treatment aimed at addressing lung disease.
Consumer stocks appeared mixed, with the Consumer Staples Select Sector SPDR Fund (XLP) registering no significant movement, while the SPDR S&P Retail ETF (XRT) increased by 0.1%. General Mills (GIS) faced challenges, dropping by 1.4% pre-opening due to lower fiscal Q1 adjusted earnings and net sales reporting.
In the energy sector, the iShares US Energy ETF (IYE) was nearly 1.5% higher while the Energy Select Sector SPDR Fund (XLE) witnessed a decline of 0.3%. Crown LNG Holdings (CGBS) reported a 1% increase prior to the market opening. However, the company did note a Nasdaq notification about failing to meet minimum bid price requirements for continued listing, as its shares had closed below the $1 mark for 30 consecutive business days.
The technology sector presented a varied picture, with the Technology Select Sector SPDR Fund (XLK) flat, the iShares US Technology ETF (IYW) up by 0.9%, and the iShares Expanded Tech Sector ETF (IGM) gaining approximately 0.5%. The semiconductor sector saw SPDR S&P Semiconductor ETF (XSD) inactive, while the iShares Semiconductor ETF (SOXX) rose by 0.1%.
Clarivate (CLVT) enjoyed a 1% increase following the launch of its generative AI-powered academic research tool, dubbed Primo Research Assistant. In the financial sector, the Financial Select Sector SPDR Fund (XLF) gained 0.1%. Notable movements included Direxion Daily Financial Bull 3X Shares (FAS.US) rising by 0.4%, contrasted with its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) which saw a minor decrease of 0.1%.
On the commodities front, the front-month US West Texas Intermediate crude oil declined by 0.9%, settling at $70.57 per barrel on the New York Mercantile Exchange, while natural gas prices increased nearly 1% to $2.35 per million British Thermal Units. The United States Oil Fund (USO) dropped by 1%, although the United States Natural Gas Fund (UNG) advanced by 1.1%.
Gold futures for December hovered at $2,606.20 per ounce, climbing 0.5%, while silver futures witnessed a slight pullback of 0.1%, landing at $31.02 per ounce. The SPDR Gold Shares (GLD) gained 0.4%, in contrast to the iShares Silver Trust (SLV), which decreased by 0.1%..