Hot Stock Futures Rise, Marking the End of September

Hot stock futures are showing promise, offering a potential turnaround after a challenging September. The Dow Jones Industrial Average, represented by futures, surged by 136 points, marking a notable 0.40% increase. Simultaneously, Nasdaq 100 futures saw an impressive 0.60% rise, while S&P 500 futures climbed by 0.40%.

Nike’s Impressive Performance

In a notable development, Nike‘s shares experienced a significant upswing, jumping by more than 7.00% in the premarket. This surge was sparked by the apparel giant’s fiscal first-quarter earnings report, which surpassed analyst expectations.

European and Asian Markets on the Rise

In the realm of European markets, a refreshing turn of events is witnessed as they open higher after concluding a five-day losing streak in the previous session. The pan-European Stoxx 600 index surged by 0.40%, with most sectors enjoying positive territory. Household goods led the way with a 1.30% rise, closely followed by tech stocks at 1.20%. However, oil and gas saw a slight downturn of 0.30%.

Asian Stock Market Prediction

Meanwhile, over in Asia, Hong Kong’s Hang Seng index demonstrated significant gains, rising by an impressive 2.45%. This resurgence was largely powered by consumer cyclicals and real estate stock finance. Among the leading gainers were tech firm Alibaba Health, sports equipment retailer Li Ning, and property services manager China Resources Mixc Lifestyle.

Japan’s Best Stocks to Day Trade

Shifting our focus to Japan, we see mixed indicators. While inflation in Tokyo grew at the slowest rate in a year, industrial and retail activity performed better than expected. Inflation in the Japanese capital stood at 2.80% for September, down from 2.90% in August. The core inflation rate, which excludes prices of fresh food, was lower than anticipated at 2.50%.

On the industrial front, Japan’s factory output defied expectations, remaining flat in August compared to July. However, on a yearly basis, it saw a decline for the third consecutive month, falling by 3.70%. Retail sales, on the other hand, experienced a 7.00% year-on-year rise, surpassing the expected 6.60%. Japan’s unemployment rate remained unchanged at 2.70% in August.

A Challenging Phase for Markets – When Will the Stock Market Recover?

In conclusion, the stock market is navigating a challenging phase. Each of the three indexes is poised to register its second consecutive negative monthly performance since September 2022. The Nasdaq is grappling with a 5.90% decline in September, set to be its worst monthly performance since December 2022. The S&P 500 is also feeling the pressure, trading 4.60% lower this month, on track for its worst performance since December 2022. The Dow, while not as severely affected, is looking at a 3.00% dip this month, making it its worst performance since May.

Caution from Grantham Mayo Van Otterloo

Finally, leading investment firms Grantham, Mayo, and Van Otterloo warn that inflationary pressures are likely to be higher in the hot stock futures. This means that higher real interest rates will be necessary to keep inflation in check. However, they caution that this could exert pressure on both expensive and leveraged assets, necessitating a strategic approach for investors.