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The major U.S. index futures are currently pointing to a roughly flat open on Monday, with stocks likely to show a lack of direction in early trading.<\/p>\n
Traders may be reluctant to make significant moves amid uncertainty about the near-term outlook for the markets<\/span> following recent volatility.<\/p>\n Stocks have seen some wild swings over the past few weeks amid an increased focus on a recent surge in treasury yields.<\/p>\n The yield on the benchmark ten-year note, which recently spiked to multi-decade highs, is little changed on the day ahead of the release of some key U.S. economic data.<\/p>\n Not long after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of September. <\/p>\n The services PMI is expected to edge down to 55.0 in September after rising to 55.4 in August, although a reading above 50 would still indicate growth.<\/p>\n “Another strong activity reading could revive the “good news is bad news” dynamic and push yields higher again, while evidence of moderation would reinforce the case for the Fed to wait,” said Daniela Hathorn, Senior Market Analyst at Capital.com.<\/p>\n Traders may also be looking ahead to the release of the minutes of the Federal Reserve’s latest monetary policy meeting on Wednesday.<\/p>\n The minutes may shed additional light on the outlook for interest ahead of the Fed’s next monetary policy meeting later this month.<\/p>\n Following last Friday’s weaker-than-expected job data, CME Group’s FedWatch Tool is currently indicating an 80.6 percent chance the Fed will leave rates unchanged.<\/p>\n Stocks gave back some ground after an early surge but continued to turn in a strong performance throughout the trading session on Friday. The major averages all moved to the upside, adding to the modest gains posted during Thursday’s session.<\/p>\n The major averages ended the day well off their highs of the session but still firmly positive. The Nasdaq jumped 319.27 points or 1.2 percent to 27,190.86, the S&P 500 advanced 56.27 points or 0.7 percent to 7,722.72 and the Dow climbed 250.40 points or 0.5 percent to 51,176.96.<\/p>\n For the week, the major averages turned in a mixed performance. While the Nasdaq rose by 0.5 percent, the S&P 500 fell by 0.3 percent and the Dow slumped by 1.3 percent.<\/p>\n The early rally on Wall Street came following the release of a closely watched Labor Department report showing much weaker-than-expected job growth in the month of September.<\/p>\n The report said non-farm payroll employment rose by 29,000 jobs in September after jumping by a downwardly revised 133,000 jobs in August, while economists had expected employment to increase by 85,000 jobs.<\/p>\n The Labor Department also said the unemployment rate ticked up to 4.2 percent in September from 4.1 percent in August. Economists had expected the unemployment rate to remain unchanged.<\/p>\n While the data may raise some concerns about the strength of the economy<\/span>, the release also contributed to a steep drop by treasury yields.<\/p>\n The weaker than expected jobs data was seen as reducing the likelihood that the Federal Reserve will once again raise interest rates at its next meeting later this month.<\/p>\n While treasury yields showed a significant turnaround as the day progressed, stocks largely held onto the early gains due in part to a steep drop by the price of crude oil.<\/p>\n Crude oil prices climbed well off their lows of the session but still slumped by 1.9 percent on the day after the Group of Seven nations confirmed plans to release diesel and crude reserves.<\/p>\n Semiconductor stocks showed a substantial move to the upside on the day, driving the Philadelphia Semiconductor Index up by 2.4 percent to a three-month closing high.<\/p>\n Considerable strength was also visible among networking stocks, as reflected by the 2.2 percent surge by the NYSE Arca Networking Index.<\/p>\n Transportation and computer hardware stocks also saw significant strength, while airline stocks came under pressure over the course of the session.<\/p>\n Commodity, Currency Markets<\/b><\/p>\n Crude oil futures are slumping $0.88 to $90.23 a barrel after tumbling $1.76 to $91.11 a barrel last Friday. Meanwhile, after falling $40 to $4,162.30 an ounce in the previous session, gold futures are climbing $30.70 to $4,193 an ounce.<\/p>\n On the currency front, the U.S. dollar is trading at 158.22 yen versus the 157.83 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1206 compared to last Friday’s $1.1253.<\/p>\n Asia<\/b><\/p>\n Asian stocks rose broadly on Monday, with markets in mainland China and South Korea closed for holidays.<\/p>\n Focus shifted to the release of the ISM Services PMI later in the day and the minutes of the September FOMC meeting on Wednesday after softer U.S. jobs data reinforced bets that the U.S. Federal Reserve may hold interest rates steady later this month.<\/p>\n The U.S. dollar was on a firm footing in Asian trading and bond yields steadied, while gold edged up slightly to hold above $4,150 an ounce, recovering from an early slide.<\/p>\n Brent crude futures fell nearly 1 percent toward $101 a barrel after gaining almost 5 percent last week.<\/p>\n Amid rising risks to global supplies, major OPEC+ members agreed over the weekend to leave production quotas unchanged next month.<\/p>\n Yemen’s government forces said Sunday they had struck Houthi targets in the capital Sanaa and Taiz in the southwest, deepening the conflict ravaging one of the world’s poorest nations and the wider region.<\/p>\n Hong Kong’s Hang Seng Index finished 0.3 percent higher at 24,040.34 as selling pressure in rate-sensitive real estate and financial shares offset gains in technology<\/span> stocks.<\/p>\n Japanese markets soared as investors scooped up chip-related stocks following a rise in U.S. stocks on Friday.<\/p>\n The Nikkei 225 Index closed 2.4 percent higher at 69,946.86 after crossing 70,000 for the first time in three months earlier.<\/p>\n The broader Topix Index advanced 1.3 percent to 4,145.22. Among the top gainers, SoftBank Group, Advantest and Tokyo Electron surged 3-6 percent. Financials also moved higher, with Mitsubishi UFJ Financial and Sumitomo Mitsui Financial rising around 2 percent each.<\/p>\n Investors shrugged off data that showed Japan’s service sector expanded at a weaker pace in September. The Japanese yen was little changed ahead of a series of economic reports due this week.<\/p>\n Japan no longer needs expansionary fiscal and monetary policies aimed at boosting demand, former Bank of Japan board member Asahi Noguchi said in an interview on Friday, reinforcing expectations that the central bank could raise interest rates again as early as December.<\/p>\n Australian markets gave up early gains to finish marginally higher, led by gains in healthcare stocks. Biopharmaceutical giant CSL rose about 1 percent after it agreed to pay up to $1.6 billion to jointly develop and commercialize an experimental treatment for rare kidney and liver diseases.<\/p>\n PYC Therapeutics rallied 3.7 percent and Cochlear surged 4.2 percent. Macmahon Holdings jumped 4.5 percent after securing a $98 million contract extension at the Daisy Milano Gold Mine.<\/p>\n Across the Tasman, New Zealand’s benchmark S&P\/NZX-50 Index edged up 0.1 percent to 13,699.02, halting losses from the previous two sessions.<\/p>\n Europe<\/b><\/p>\n European stocks are mixed on Monday, with French stocks under selling pressure after a historic rout in French government debt.<\/p>\n The euro weakened to a 17-month low against the dollar on worries over rising borrowing costs and political instability in France.<\/p>\n The French-German 10-year bond spread stood at 146.30 basis points, after having spiked to a nearly 15-year high on Friday.<\/p>\n It is anticipated that France’s debt-to-GDP ratio will increase from 119 percent this year to 122 percent next year.<\/p>\n While the French CAC 40 Index is down by 0.7 percent, the German DAX Index is up by 0.2 percent and the U.K.’s FTSE 100 Index is up by 0.6 percent.<\/p>\n In corporate news, Alm. Brand shares has surged. The Danish insurance company raised its fiscal 2026 outlook following a favorable performance in the third quarter.<\/p>\n AkzoNobel has also rallied. The Dutch paints and coatings giant announced it had agreed to sell its Southeast Asian decorative paints business<\/span> to Nippon Paint for $1.35 billion.<\/p>\n German telecommunications giant Deutsche Telekom has also risen after saying it expects to save around \u20ac2.5 billion in indirect costs by 2030 compared to 2023.<\/p>\n French industrial gases giant Air Liquide has also moved to the upside after unveiling its new strategic plan through 2030.<\/p>\n British telecom provider BT Group has also surged after it acquired broadband operator TalkTalk out of administration.<\/p>\n Sirius Real Estate has also advanced. The company, which owns and operates branded business parks, offices, and mixed-use workspaces across Germany and the United Kingdom, reported 11.3 percent year-on-year rent roll growth for the six months to September.<\/p>\n Meanwhile, Novo Nordisk has fallen after the U.S. FDA delayed its decision on whether to approve its experimental hemophilia A drug.<\/p>\n U.S. Economic News<\/b><\/p>\n The Institute for Supply Management is scheduled to release its report on service sector activity in the month of September at 10 am ET. <\/p>\n The services PMI is expected to edge down to 55.0 in September after rising to 55.4 in August, although a reading above 50 would still indicate growth. <\/p>\n<\/p>\n<\/div>\n