Investing.com -- U.S. stocks edged lower Monday, on the final day of a positive September as investors look to comments from Fed Chair Jerome Powell for clues over future interest rate cuts.
By 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was down 140 points, or 0.3%, the S&P 500 index traded 7 points, or 0.1%, lower and the NASDAQ Composite index traded largely unchanged.
September--historically the weakest month for the stock market--is on course to be a positive month, in the wake of the decision of the US central bank to cut interest rates by an outsized 50 basis points.
The blue chip Dow Jones Industrial Average has gained 1.8% month-to-date, ending Friday’s session at a new record high, and the broad-based S&P 500 rose 1.6%, while the tech-heavy Nasdaq advanced 2.3% in September.
Powell set to speak
This optimism is largely based on investors expecting the Federal Reserve to roll out another hefty 50-basis point interest rate cut at its next meeting on the back easing price pressures and weakening in labor demand.
With this in mind traders are now turning their attention to comments on the outlook for the economy from Powell at the National Association for Business Economics annual meeting in Tennessee later in the session.
Additionally, the week ends with the release of the October nonfarm payrolls report on Friday, with economists expecting the US economy to have added 144,000 jobs.
Investors are keen to see whether the jobs data will support expectations for a soft-landing scenario, in which the Fed tames inflation without badly impacting growth, or revives fears over the prospect of a recession.
Stellantis (LON:0QXR) cuts annual forecasts
On the corporate front, Stellantis (NYSE:STLA) stock slumped over 12% after the auto giant, known for brands such as Chrysler, Dodge and Jeep, slashed its annual forecasts and said it would burn through more cash than expected, citing worsening trends in the industry, higher costs to overhaul its U.S. business and Chinese competition on electric vehicles.
AT&T (NYSE:T) stock rose 0.5% after the telecom giant announced Monday that it plans to sell its 70% ownership in satellite TV provider DirecTV to private equity firm TPG for $7.6 billion, marking its exit from a business that has seen dwindling returns.
CVS Health (NYSE:CVS) stock rose 3.2% after the Wall Street Journal reported that Glenview Capital, a major shareholder of the pharmacy company, is expected to meet with CVS’s leadership to propose fixes for the struggling business.
Insurance brokerage Marsh & McLennan (NYSE:MMC) said on Monday it has agreed to buy smaller rival McGriff Insurance Services for $7.75 billion, as the industry gears up for higher spending on policies from businesses amid an improving economic outlook.
Crude gains as Israel escalates attacks
Oil prices edged higher Monday on the possibility of a widening Middle East conflict after Israel stepped up its attacks on the Iranian-backed Hezbollah and Houthi militant groups.
By 09:35 ET, the Brent contract climbed 0.2% to $71.67 per barrel, while U.S. crude futures (WTI) traded 0.2% higher to $68.28 per barrel.
Israel said it bombed Houthi targets in Yemen on Sunday, just a few days after killing Hezbollah leader Sayyed Hassan Nasrallah in an escalating conflict in Lebanon.
Both contracts fell last week as demand worries increased after fiscal stimulus from China, the world's second-biggest economy and top oil importer, failed to reassure market confidence.