US Stock Futures: US Job Openings and Fed Speakers in Focus
US stock futures posted losses on Monday, pulling back from last week’s record highs. The Nasdaq 100 E-mini fell 91 points, the Dow Jones E-mini dropped 83 points, while the S&P 500 E-mini declined 16.
Later on Tuesday, US labor market data and Fed speakers will influence sentiment.
Economists forecast JOLTs job openings to drop from 7.227 million in August to 7.2 million in September. A sharper drop in job openings could signal a further cooling in the labor market. Weaker labor market conditions could slow wage growth and curb consumer spending, impacting the US economy.
Labor market data typically influences bets on Fed rate cuts. However, the September numbers may fuel speculation about stagflation, given the Fed’s concerns about inflation. Rising risks of stagflation could send US stock futures lower.
During the October press conference, Fed Chair Powell stated:
“Risks to inflation are tilted to the upside, and risks to employment are tilted to the downside.”
The Kobeissi Letter commented on Powell’s speech, stating:
“Fancy way to say stagflation.”
Beyond the data, traders should continue to monitor Fed speakers. Growing support for delays to rate cuts will likely test demand for US stock futures.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Despite the morning losses, US stock futures traded above key technical levels, signaling bullish momentum.
Near-term trends will hinge on developments from Capitol Hill, upcoming labor data, and remarks from Fed officials. Key levels traders should monitor include:
Dow Jones
- Resistance: 47,500, 48,000, and the October 28 record high of 48,214.
- Support: 47,000 and the 50-day EMA (46,480).
