US open: Stocks rise after tumbling across September
Fiona Cincotta October 1, 2021 8:55 AM
Wall Street is edging higher after steep losses across September. Whilst the macro picture remains troubling bargain hunters are out once again. US ISM manufacturing and Michigan consumer confidence due next.

US futures
Dow futures +0.46% at 34000
S&P futures +0.25% at 4320
Nasdaq futures +0.2% at 14720
In Europe
FTSE -0.73% at 7047
Dax -0.5% at 15226
Euro Stoxx +0.01% at 4047
Bargain hunters out in force
US stocks pointing higher as a slew of upbeat corporate updates help to calm investors nerves over rising inflation, slowing growth and the Fed tapering.
Bargain hunters are back on the scene for a second time this week after a combination of factors such as stagflation, the reining in of stimulus and setbacks for Biden’s spending plans sent stocks sharply lower on Thursday.
Its’ a bit of a relief to have September in the rear-view mirror. September is traditionally a poor month for equities and this September certainly didn’t disappoint there. US indices dropped sharply with the tech heavy Nasdaq taking the hardest hit as expectation rose that the Fed could move sooner to raise rates.
However, with many of the macro themes which have dragged on stocks set to rollover into October the outlook remains troubling.
Attention will now turn to US ISM manufacturing numbers along with Michigan consumer confidence.
Where next for the S&P500?
The S&P 500 closed below its 100 sma for the first time since November. Whilst the RSI points to further losses, the hammer candlestick formation is keeping the buyers optimistic. Any meaningful recovery needs to retake 4350 in order to target 4400. On the downside the next key level can be seen at 4230 the July low ahead of 4200 round number.

FX – USD eases, UK Mfg PMI beats forecasts
The US Dollar is falling lower but is still set to book its strongest week of gains since June. The Greenback traced treasury yields higher amid expectations that the Fed could start tightening monetary policy sooner than its peers as inflation remains stubbornly high. Fed Chair Powell acknowledged that inflation could remain elevated for longer than the Fed anticipated.
GBP/USD The Pound is capitalizing on the weaker USD, extending its recovery from the recent 9-month lows, finding support from better than forecast manufacturing PMI data, which slowed by less than expected in September to 57.1, down from 60.3, but ahead of the 56.3 forecast.
GBP/USD +0.4% at 1.3540 EUR/USD +0.25% at 1.1606Oil falls on potential OPEC output increase
Oil lower on the day amid reports that OPCE+ producers could ramp up the planned increase in production in order to ease supply concerns. The OPEC+ group are to meet on Monday and could be considering a 400,000 barrels per day additional increase to supply each month.
Both benchmarks edged lower on the report. However, still continue to trade around recent highs and are set to book gains across the week, the sixth straight week of gains.
Demand is expected to outstrip supply by 1.5 million barrels per day for the next 6 months according to Citigroup, keeping prices buoyant. However, the stronger US Dollar has acted as a drag.
WTI crude trades -0.34% at $74.63
Brent trades -0.27% at $78.06
Looking ahead
14:45 Markit Manufacturing PMI
15:00 ISM Manufacturing
15:00 Michigan consumer confidence
18:00 ECB Baker Hughes rig count
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.