U.S Stock Market prediction for Monday: Dow, S&P, Nasdaq, Russell 2000 set for low opening, Meta, Tesla, other stocks, factors to watch out today

U.S. Stock Market indexes are set to start the week today on a muted note as Dow, S&P, Nasdaq, and Russell 2000 futures were in red at the Wall Street. S&P Futures were down at 7,761.50, minus 42.25, minus 0.54 per cent, Dow Futures slipped at 51,903.00, minus 260.00, minus 0.50 per cent, Nasdaq Futures fell at 30,578.50, minus 310.75, minus 1.01 per cent, Russell 2000 Futures were sedate at 2,840.60, minus 18.70, minus 0.65 per cent.

The volatility came after President Donald Trump rejected an Iranian proposal to end the conflict, leading to a spike in crude prices that rekindled inflation concerns and drove Treasury yields higher.

Top Stocks to Watch Out at Wall Street on Monday


Tesla dipped 1 per cent after brokerage J.P.Morgan lowered its price target on the stock citing weak deliveries in the third quarter. Meta eased 2.2 per cent after last week's 13 per cent surge.

US-listed shares of precious metal miners were among top decliners as elevated yields weighed on prices of the non-yielding assets. Gold Fields slid 16 per cent in premarket trading, while Harmony Gold and Endeavour Silver lost 5 per cent and 6 per cent, respectively.

Factors to Impact U.S. Stock Markets

Crude prices jumped 3 per cent to around $108-a-barrel. The 60-day rolling correlation between oil prices and Wall Street futures has climbed to its highest level since late May, LSEG data showed, suggesting that energy markets and equities are becoming more sensitive to the same macro factors, including the potential economic and inflationary impact of a prolonged conflict.

Those concerns also weighed on Treasuries, sending longer-dated yields to fresh multi-decade highs.

Investors got some relief on the trade front following the conclusion of the Sino-US summit last week where the trade partners agreed to cut tariffs imposed on $60 billion worth of goods imported from each other. The countries also agreed to a two-month extension of their trade truce through to January 10.

Meanwhile, the scrutiny was high on the accessibility of several AI agents following several recent incidents of hacking, including one where OpenAI's models accessed publicly available information from US government websites, according to a report.

As the week progresses, the spotlight will be on a slew of crucial economic indicators at a time when traders are pricing in a 70 per cent chance that the Federal Reserve will hike interest rates by at least 25 basis points back-to-back in October, the CME Group's FedWatch Tool showed.

The Personal Consumption Expenditures Index for August and the Non-Farm Payrolls report for September, both due this week, could help investors gauge the path for monetary policy by the Fed this year.

Policymakers Michelle Bowman, Lisa Cook and Thomas Barkin are due to speak later on Monday and could reiterate the hawkish shift in policy at the central bank since the previous meeting.