Dow Jones & Nasdaq 100 steady before key PMI release and Powell Speech
According to Polymarket, the odds of KOIZUMI becoming the next Japanese Prime Minister sit at 75%, leading the other main contender, SANAE TAKAICHI (23%).
Markets React: US Stock Futures Hold Steady Ahead of PMI Data
US stock futures were flat in morning trading on Tuesday, September 23. The Dow Jones E-mini gained 9 points, while the Nasdaq 100 E-mini and the S&P 500 E-mini held steady after reaching new highs overnight.
Upcoming economic data and Fed speakers will influence sentiment ahead of Friday’s crucial Personal Income and Outlays report.
US Services PMI to Spotlight the Fed
After weaker Australian PMIs earlier in the session, attention shifts to the US PMI release. Economists forecast the S&P Global Services PMI to fall from 54.5 in August to 53.9 in September. A sharper drop toward the neutral 50 level could fuel recession jitters, given that the services sector accounts for around 80% of US GDP. Beyond the headline PMI, employment, and price trends also require consideration.
Higher layoffs and rising prices amid waning sector activity could fuel concerns about stagflation, weighing on risk assets.
On the other hand, a modest drop or higher headline PMI, falling prices, and a steady labor market may ease stagflation risks, boosting sentiment.
Beyond the data, Fed Chair Powell is on the calendar to speak. Further monetary policy guidance will influence demand for US stock futures.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Following the overnight gains and steady morning, US stock futures traded well above the 50-day and 200-day Exponential Moving Averages (EMAs), reaffirming the short-term bullish bias.
However, the bullish bias hinges on upcoming PMI data, Fed policy cues, and the BoJ rhetoric. For traders, here are the key levels driving market trends.
Dow Jones
- Resistance: September 22 record high of 46,784 and then 47,000.
- Support: 46,500, 46,000, and then the 50-day EMA (45,223).