September Market Update: Stock Futures Steady Amid New Tariff Uncertainties Following Court Ruling

U.S. stock futures were steady Monday evening as investors looked ahead to a tricky month for the markets.

The Dow Jones Industrial Average futures ticked up by 41 points, or 0.09%. Similarly, S&P 500 futures rose about 0.12%, and Nasdaq 100 futures gained 0.13%.

This stability follows a significant court ruling last Friday. A federal appeals court decided that many of former President Trump’s global tariffs are illegal, saying only Congress has the power to impose such broad levies. Trump criticized the ruling as “highly partisan” and plans to take it to the U.S. Supreme Court.

An expert at Jefferies, Aniket Shah, pointed out that a Supreme Court ruling against Trump’s tariff powers could ease fears of escalating trade tensions, which would be good news for the market. However, uncertainty might rise in the short term, especially if new trade agreements are needed.

September has a history of being tough on stocks. The S&P 500 has averaged a 4.2% drop over the last five years in this month. In the past decade, it has fallen more than 2% on average during September.

Adding to this uncertainty are concerns about the independence of the Federal Reserve. The ongoing power struggles, including attempts by the Trump administration to reshape the Fed’s leadership, have raised eyebrows. A recent court hearing regarding Trump’s ability to fire officials like Lisa Cook ended without a decision. This week, a Senate hearing is scheduled for Stephen Miran, one of Trump’s nominees.

Despite the looming challenges, Wall Street is coming off a positive month. In August, the Dow climbed more than 3%, and the S&P 500 enjoyed a nearly 2% rise. The Nasdaq saw a 1.6% increase, marking the fourth consecutive month of gains for the S&P.

Investors now await the jobs report set to release this Friday. This report will likely influence the Federal Reserve’s decisions on interest rates later in the month.

Understanding these market dynamics is crucial. The potential for interest rate changes and ongoing trade discussions will shape investment strategies in the coming weeks. As experts warn, staying informed about these shifts is key to navigating the ever-changing financial landscape.

For further insights into stock market trends, you can explore the U.S. Bureau of Labor Statistics for employment statistics.

Source link

Breaking News: Markets,Stock markets,Markets,United States,Donald J. Trump,Donald Trump,business news