Wall Street Set To Start New Week Sharply Lower As Traders Brace For Key Economic Data And Fed Minutes: Why Strategist Sees Market Consolidating In Near Term

U.S. stock futures are headed lower on Monday after the jobs data-induced strength seen in the final session of last week. The mood has been rendered cautious as traders await a few key first-tier economic data and the minutes of the Federal Reserve’s September rate-setting meeting.

The imminent third-quarter reporting season could force traders to stay on the sidelines as corporate profit growth has been a major driving factor for the market amid economic uncertainties. JP Morgan Chase & Co. (NYSE:JPM) kickstarts the big bank reporting season this Friday.

The Middle East tensions that have sent oil on the boil could also be a spot a bother for traders even as they look ahead to soft-landing, facilitated by the Fed’s rate cuts.

In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) slipped 0.57% to $569.72 and the Invesco QQQ ETF (NASDAQ:QQQ) moved 0.69% lower to $483.97, according to Benzinga Pro data.

Cues From Last Week:

U.S. stocks kept the winning streak going, as the major indices rose for a fourth straight week but the gains were much more modest and came amid volatility. The 30-stock Dow Jones Industrial Average finished at a fresh record. Small-cap stocks, however, posted a moderate decline for the week.

Stocks started the week higher amid caution but pulled back on Tuesday, dragged by geopolitical tensions, worries concerning the dockworkers’ strike and weak manufacturing data. The major averages reversed course on Wednesday, despite ongoing headwinds, but retreated on Thursday as traders processed a mixed set of economic data and remained cautious amid Middle East tensions and the port strike.

Stronger-than-expected non-farm payroll gains, although generating some sell-off in early trading, lifted the averages higher thereafter, helping them to recoup all their losses for the week.

Insights From Analysts:

The market could be stuck in the recent trading range until the November election, said Ivan Martchev, investment strategist at Navellier & Associates. The strategist said the same type of trading seen in July, ...

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