Stock Market Today – Wednesday, August 31: What You Need to Know – TipRanks

Pre-Market Update

Stock futures are pointing to a positive opening today after yesterday’s third consecutive drop in broader indices.

Futures on the Dow Jones Industrial Average (DJIA) are up 0.68%, while those on the S&P 500 (SPX)  are up 0.71% as of 2.07a.m. EST, Wednesday. Tech bellwether NASDAQ 100 (NDX) futures are up 0.87% after the index’s 1.12% drop yesterday. The Dow and the S&P 500 declined 0.96% and 1.10%, respectively, on Tuesday.

Could More Rate Hikes be in the Cards?

While Fed Chair Jerome Powell’s comments last week caused tremors in the market, yesterday John Williams, the New York Fed President, commented that interest rates should be “somewhat restrictive” to slow demand, indicating interest rates could stay elevated until inflation is tamed.

Throughout the day, the market can be expected to take cues from the ADP Jobs Report at 8.15 a.m., the Chicago PMI at 9.45 a.m., the EIA Petroleum Inventories at 10.30 a.m., and Farm price numbers at 3 p.m. The Chicago PMI remains a key barometer of how businesses are faring in the current environment.

Moreover, two important speeches today from the new President and CEO of the Dallas Fed, Lorrie K. Logan, at 6 p.m. and the President and CEO of the Atlanta Fed, Dr. Raphael W. Bostic, will also be key events to watch.

Equities and Cryptos Alike Feel the Pressure

The U.S. 10-year Treasury Yield is now at 3.101%, up from 2.7910% only two weeks ago. In China, manufacturing contracted for the second month in a row as lockdowns and power shortages take a toll on its economy.

As the tech world continues to make noise about hiring slowdowns and job cuts, SNAP (SNAP) (GB:0RNH) looks set to join the trend with a 20% headcount trim. A large number of workers moderating content for Facebook (META) in the U.S. are also looking at job cuts as the company looks to source this work from Singapore.

The weakening market confidence is also spilling into the crypto world, and Bitcoin (BTC-USD) and Ethereum (ETH-USD), the two leading cryptocurrencies, are down ~6% each over the past five days, even as the crypto community remains excited about the Ethereum Merge next month.

While investors may look to take advantage of the current market weakness, the next direction for the market will possibly be set at the next Fed meeting on September 13.

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