U.S. stock futures fall amid stimulus uncertainty

by Jonathan Adams
stock futures

The Dow Jones Industrial Average gained 0.13%, the S&P 500 added 0.53% and the Nasdaq Composite rose 1.42%

U.S. stock futures fell 0.23% as an additional economic stimulus package remained elusive despite renewed efforts from negotiators.

After a day of negotiations, House Speaker Nancy Pelosi told reporters she did not expect an imminent agreement with the Trump administration. It remains unclear if policymakers can get something done before the Nov. 3 election.

The risk is that if disposable incomes continue to fall, the recovery in personal spending will slow or even reverse. The fiscal stimulus stalemate suggests additional government support payments to households are unlikely soon, said Commonwealth Bank of Australia currency analyst Kim Mundy in a note.

The Dow Jones Industrial Average rose 0.13% on Thursday. The S&P 500 gained 0.53% and the Nasdaq Composite added 1.42%. U.S. consumer spending is starting to slow due to a shaky jobs market. If policymakers cannot agree on more support, the U.S. economy could lose more momentum.

The focus shifts to the Labor Department’s report on non-farm payrolls and the jobless rate later Friday, following new layoff announcements from the likes of Disney and Goldman Sachs. The dollar index was quoted at 93.811, close to a one-week low due to doubts about U.S. stimulus talks. The Chinese yuan, Australian, New Zealand and Canadian dollars have all gained against the greenback.

Spot gold fell 0.4% to $1,897.41 an ounce, adding to its worst month since November 2016, while oil prices continued to fall, adding to a 10% September drop.

Brent crude futures were trading down 1.0% at $40.52 a barrel in Asia on Friday, while U.S. crude futures were down 1.03% at $38.33 a barrel. Oil prices fell more than 3% on Thursday as rising coronavirus cases around the world dampened the demand outlook, while a rise last month in member output from the Organization of the Petroleum Exporting Countries also pressured prices.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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