© Reuters
By Peter Nurse
Investing.com — U.S. stocks are seen opening higher Monday, rebounding after the previous torrid quarter as investors prepare for more volatility at the start of a week which includes the latest U.S. jobs report.
At 07:00 ET (11:00 GMT), the contract was up 185 points, or 0.6%, traded 20 points, or 0.5% higher, and climbed 10 points, or 0.1%.
The main equity indices closed sharply lower Friday, posting their third straight quarterly decline. The blue-chip dropped over 500 points, closing below 29,000 for the first time since November 2020.
The Dow fell 6.7% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while the broad-based dropped 5.3% and the fell 4.1%, falling for their third consecutive negative quarter for the first time since 2009.
Markets have been roiled by stubbornly high inflation, rising interest rates, and recession fears, and these concerns remain in place as the final quarter of the year starts.
The week ends with the publication of the September , which will show whether the Federal Reserve’s aggressive series of rate hikes is having an impact on the labor market.
Ahead of this, there are a number of Fed policymakers due to speak Monday, and investors will study their comments while assessing the likelihood of another 75 basis-point rate hike at the November policy-setting meeting.
Monday’s main data release will be the number for September, which is expected to show that activity in the sector remained solid.
This contrasts with manufacturing activity across the Eurozone, with the S&P Global’s final falling to a 27-month low of 48.4 in September, as a growing cost of living crisis kept consumers wary while soaring energy bills limited production.
In the corporate sector, Tesla (NASDAQ:) stock fell premarket after the electric car manufacturer announced lower-than-expected electric vehicle deliveries in the third quarter, citing logistical challenges.
Oil prices soared Monday on speculation that a group of top producers will agree to a hefty output cut in order to support a market which has seen four straight months of losses.
The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, is set to meet on Wednesday, and Reuters has reported that the members are considering an output cut of more than one million barrels a day.
If agreed, this would be the largest reduction since the pandemic, and would follow on from the cut of 100,000 barrels per day last month.
By 07:00 ET, futures traded 4.2% higher at $82.81 a barrel, while the contract rose 4% to $88.51.
Additionally, traded 0.2% higher to $1,674.65/oz, while traded 0.1% higher at 0.9810.
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