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The S&P 500 is Stuck in a Downturn, but Stock Futures are Up to Start a Huge Week

As traders prepared for a busy week that included an important Federal Reserve rate decision, a jobs report, and Apple’s earnings report, U.S. stock futures gained on Monday.

While Nasdaq-100 futures climbed 0.8%, S&P 500 futures added 0.6%. Futures on the Dow Jones Industrial Average were up 157 points, or 0.5%.

With a 2.5% weekly loss and a 10.6% decline from its 2023 peak, the S&P 500 entered correction territory last week. As of October 4, the benchmark is down 4%. This puts it on track to have its third consecutive negative month, which would be the first since the pandemic struck in 2020.

On Wednesday, the Federal Reserve will make a decision that is expected to keep its benchmark interest rate at its current level. As the primary cause of this stock market drop, rising interest rates, investors will be hoping the Fed hints it may be done hiking rates. By 2023, traders anticipate that rate increases by the Fed will end.

Although it began last week above 5%, the yield on the 10-year Treasury ended at 4.84%. The October employment data is out on Friday, and investors are expecting a slowdown in the labour market so the Fed can feel safe in keeping rates on hold for the remainder of the year.

Source (CNBC)

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