S&P500: Bullish Sentiment Surges as US Stocks Break September Slump

Wall Street’s Winning Streak: Stocks Surge into Friday

U.S. stock futures rose Friday as traders aimed to shake off September’s sluggish start. Major indices are set for significant weekly gains, with the Nasdaq Composite leading the charge.

At 12:51 GMT, Dow Futures are trading 41181.00, up 35.00 or +0.09%. S&P 500 Index Futures are at 5607.00, up 4.75 or +0.08% and Nasdaq Futures are trading 19422.75, down 24.50 or -0.13%.

Bulls Take Charge: Indices Soar

The S&P 500 and Nasdaq Composite have logged four consecutive winning sessions. Week-to-date performances show:

• Dow Jones Industrial Average: Up 1.9%
• S&P 500: Up 3.5%
• Nasdaq Composite: Up 5.3%

Both the Dow and S&P 500 are on track for their fourth weekly gain in five weeks, while the Nasdaq is set to break its two-week losing streak.

Fed Watch: Rate Cut on the Horizon?

Investors are now looking ahead to the Federal Reserve’s policy meeting on September 17-18. Market expectations largely anticipate a 25 basis point rate cut, with the current target rate at 5.25% to 5.5%.

Recent economic data supports the case for a rate adjustment. The August consumer price index came in at 2.5% on an annualized basis, the lowest since February 2021. Wholesale prices rose 0.2% in August, aligning with expectations.

Dan Greenhaus, chief strategist at Solus Alternative Asset Management, commented on CNBC’s “Closing Bell”: “At the end of the day, the U.S. consumer and the economy continue to do well, [and] profits continue to print above expectations.”

Economic Pulse: Key Data on Deck

Friday’s session will see the release of August’s import prices data and preliminary consumer sentiment figures for September, potentially influencing market direction.

Corporate Drama: Movers and Shakers

Boeing shares sank 4% following a factory worker strike, impacting production of most aircraft, including the 737 Max.

Oracle stock rallied over 6% after the company raised its fiscal 2026 revenue forecast and provided strong guidance for fiscal 2029.

Adobe shares plunged more than 8% despite beating third-quarter expectations, due to disappointing fourth-quarter guidance. The company reported earnings per share of $4.65 on revenue of $5.41 billion, surpassing analyst expectations.

RH, the home furnishings retailer, surged over 20% after beating second-quarter estimates and reporting accelerated demand. Bank of America analyst Curtis Nagle raised the price target on RH to $359 per share from $310, citing potential for further share gains.

Market Crystal Ball: What’s Next for Traders?

The overall market sentiment appears bullish in the short term. Strong weekly performances across major indices, coupled with moderating inflation data, suggest investor optimism. The upcoming Federal Reserve meeting remains a key event that could influence market direction.

Technically, sentiment should remain bullish as long as the benchmark index remains above the 50-day moving average at 5540.28. The next target is the September 3 main top at 5669.75. This is the last main top before the record high at 5721.25, set on July 16.

Traders should closely monitor the Fed’s decision and accompanying commentary for insights into future monetary policy. Additionally, keep an eye on upcoming economic data releases and corporate earnings reports for further market cues.

While the current rally is encouraging, it’s important to maintain a balanced approach. The potential for volatility remains, particularly given the recent strong gains and ongoing economic uncertainties. Traders should be prepared for possible short-term corrections while positioning for potential longer-term growth opportunities.