Dow Jones Industrial Average futures edged higher on Monday as Wall Street attempted to start the new month and quarter on a solid note.
Dow futures rose 164 points, or 0.6%. The S&P 500 rose 0.4%, while the Nasdaq 100 was flat.
Wall Street is having a rough month, with the Dow and S&P 500 posting their biggest monthly declines since March 2020. The Dow also closed below 29,000 on Friday for the first time since November 2020.
The Dow fell 8.8% in September, while the S&P 500 and Nasdaq Composite lost 9.3% and 10.5%, respectively.
For the quarter, the Dow dropped 6.66%, its first three consecutive quarters of declines since the third quarter of 2015. The S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, their third straight quarterly declines for the first time since 2009.
As the new quarter kicks off, all S&P 500 sectors are down at least 10% from their 52-week highs. Nine industries ended the quarter in negative territory.
In the fourth quarter, rising inflation and the Fed’s intention to stop soaring prices, whatever that means for the economy, are likely to continue to weigh on markets, said Truist’s Keith Lerner. However, oversold conditions also leave the market vulnerable to a sharp short-term rally on good news, he added.
“I think we can prepare for some type of reprieve, but the underlying trend right now is still a downtrend and choppy waters will continue,” Lerner said.
On the economic front, Markit PMI and ISM manufacturing data will be released on Monday alongside construction spending.