US Stock Market Today: S&P 500 Futures Edge Higher On Firm Services And Inflation Jitters

US stock futures are pointing higher this morning, with key contracts on the S&P 500 and Nasdaq up around 0.2% to 0.6% as investors digest strong service sector readings and fresh inflation worries. The ISM Services PMI came in at 54.9 for September, which signals expanding activity and indicates that demand for things like travel, healthcare and business services is still solid. A broader scorecard, the US Composite PMI, printed 58.4 and showed the fastest private sector expansion in more than five years, but also reported rising input and selling prices. That combination of firm growth and persistent cost pressures puts interest rate sensitive areas such as tech, real estate and highly leveraged small caps in the spotlight. The key question now is whether central banks feel comfortable staying patient or see these numbers as a reason to keep borrowing costs high for longer, which can weigh on growth focused investments.

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Ciena (CIEN) surged 13.85% after investors focused on growth opportunities in high speed networking gear.

Constellation Energy (CEG) jumped 12.25% after a long term nuclear power deal with Google drew fresh attention.

Vistra (VST) gained 10.77% as traders reacted to expectations of a multi billion US$ government loan for nuclear upgrades.

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Seagate Technology Holdings (STX) fell 9.18% after reports it is competing with Toshiba to buy TDK's HDD head unit.

Guardant Health (GH) declined 8.83%.

Moderna (MRNA) slipped 7.75% as investors reassessed sentiment around the vaccine maker.

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Central bank messaging, US labor readings and a pair of high profile earnings reports set the tone into week end.

Fed Watch: FOMC Minutes on Wednesday give investors fresh detail on how policymakers view inflation, jobs and future rate paths.

Housing & Rates: US MBA 30 year mortgage rate on Wednesday offers another read on financing costs for property sensitive sectors.

PepsiCo (PEP): Q3 results early Thursday will highlight consumer demand resilience and cost discipline for a global packaged food company.

Labor Market: US Initial Jobless Claims on Thursday update the picture on layoffs and short term pressure on household spending.

Delta Air Lines (DAL): Q3 earnings on Friday at 12:30 PM will focus attention on travel demand, fuel expenses and unit revenue trends.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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