Stock Index Futures Muted Ahead of U.S. PMI Data and Powell’s Speech

December S&P 500 E-Mini futures (ESZ25) are down -0.04%, and December Nasdaq 100 E-Mini futures (NQZ25) are down -0.06% this morning as investors remain on the sidelines ahead of a speech from Federal Reserve Chair Jerome Powell and U.S. business activity data.

In yesterday’s trading session, Wall Street’s main stock indexes ended in the green, with the S&P 500, Dow, and Nasdaq 100 posting new record highs. Nvidia (NVDA) rose over +3% after the chipmaker announced plans to invest up to $100 billion in OpenAI to support new data centers and other AI infrastructure. Also, Teradyne (TER) surged more than +12% and was the top percentage gainer on the S&P 500 after Susquehanna raised its price target on the stock to $200 from $133. In addition, Applied Materials (AMAT) climbed over +5% and was the top percentage gainer on the Nasdaq 100 after Morgan Stanley upgraded the stock to Overweight from Equal Weight with a price target of $209. On the bearish side, Kenvue (KVUE) slumped more than -7% and was the top percentage loser on the S&P 500 after the Washington Post reported that the Trump administration plans to link the active ingredient in Tylenol to autism.

Fed Governor Stephen Miran said on Monday that interest rates are currently too high and argued for cutting them aggressively in the coming months to safeguard the labor market. At the same time, St. Louis Fed President Alberto Musalem said he supported last week’s rate cut but sees limited scope for further reductions amid elevated inflation. Also, Atlanta Fed President Raphael Bostic said he was comfortable with last week’s rate cut but sees little justification for further easing this year. In addition, Cleveland Fed President Beth Hammack said she remains firmly focused on inflation and that policymakers should be careful with interest rate cuts to avoid overheating the economy.

U.S. rate futures have priced in an 89.8% probability of a 25 basis point rate cut and a 10.2% chance of no rate change at the next FOMC meeting in October.

Meanwhile, the Organization for Economic Cooperation and Development said on Tuesday that the U.S. and global economies are expected to slow less sharply this year than previously forecast, but will continue to lose momentum in 2026 as higher tariffs increasingly weigh on activity. The U.S. economy is now projected to expand by 1.8% this year, up from the 1.6% forecast in June, and 1.5% next year, unchanged from the previous forecast. The global economy is projected to grow by 3.2% this year, up from the 2.9% projected in June, and 2.9% next year, unchanged from the previous forecast.

Today, investors will focus on a speech from Fed Chair Jerome Powell. Mr. Powell is set to speak on the economic outlook at an event at the Greater Providence Chamber of Commerce. Also, Chicago Fed President Austan Goolsbee, Atlanta Fed President Raphael Bostic, and Fed Governor Michelle Bowman will speak today.

“Fedspeak this week will highlight the wide dispersion of views on the Committee,” said Oscar Munoz at TD Securities. “We do not expect Powell to change his tone from his FOMC press conference.”

On the economic data front, investors will monitor preliminary U.S. purchasing managers’ surveys, as they will provide updates on activity in the manufacturing and services sectors. Economists expect the September S&P Global Manufacturing PMI to be 52.2 and the S&P Global Services PMI to be 54.0, compared to the previous values of 53.0 and 54.5, respectively.

The U.S. Richmond Fed Manufacturing Index will also be released today. Economists foresee this figure coming in at -5 in September, compared to last month’s value of -7.

On the earnings front, chipmaker Micron Technology (MU) and auto parts seller AutoZone (AZO) are slated to release their quarterly results today.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.127%, down -0.48%.

The Euro Stoxx 50 Index is up +0.64% this morning as investors digested positive PMI data from the region and awaited a speech from Fed Chair Jerome Powell. Utilities stocks climbed on Tuesday, with Orsted A/S (ORSTE.C.DX) surging over +6% after a U.S. federal judge ruled that the offshore wind developer could resume work on the nearly completed project off the coast of Rhode Island. Retail and technology stocks also advanced. A survey released on Tuesday showed that Eurozone business activity expanded at its fastest pace in 16 months in September, supported by strength in services and signaling modest momentum in the economy. Meanwhile, the European Central Bank warned that the Eurozone economy could face higher inflation and weaker growth if supplies of rare earth minerals from China are disrupted. On the monetary policy front, Sweden’s central bank cut its key policy rate by 25 basis points to 1.75% and signaled the move could mark the final easing of the current cycle. In other corporate news, Kingfisher Plc (KGF.LN) soared more than +17% after the home-improvement retailer boosted its full-year expectations following a solid first-half performance.

Eurozone’s Composite PMI (preliminary), Eurozone’s Manufacturing PMI (preliminary), and Eurozone’s Services PMI (preliminary) were released today.

Eurozone’s September Composite PMI has been reported at 51.2, stronger than expectations of 51.1.

Eurozone’s September Manufacturing PMI came in at 49.5, weaker than expectations of 50.7.

Eurozone’s September Services PMI arrived at 51.4, stronger than expectations of 50.6.

China’s Shanghai Composite Index (SHCOMP) closed down -0.18%, while Japan’s financial markets were closed for a holiday.

China’s Shanghai Composite Index closed slightly lower today. The benchmark index pared most of its earlier losses as strength in bank stocks helped offset some of the profit-taking pressure in the tech sector. Sentiment was subdued on Tuesday after a closely watched press conference by top financial regulators on Monday failed to deliver any new policy support. People’s Bank of China Governor Pan Gongsheng vowed to deploy a variety of monetary policy tools to maintain ample liquidity, work to reduce funding costs, and support economic recovery. Goldman Sachs’ economics research team said, “[Pan’s] emphasis on balancing financing stability with growth support reinforces our view that policymakers are in no rush to ease and may act later if underlying growth momentum deteriorates.” Meanwhile, brokerage stocks slumped on Tuesday after Reuters reported that China’s securities watchdog asked some local brokers to pause their real-world asset business in Hong Kong. In other news, Caixin Magazine reported that China plans to launch a new financing instrument by the end of September to provide capital for investment projects. The new policy tool would direct a total of 500 billion yuan ($70.3 billion) in funds through three state-owned policy banks in China to stimulate sluggish investment. In corporate news, Hangzhou Changchuan Technology jumped +20% after the integrated circuit equipment maker provided an upbeat net profit forecast for the January-September period.

Japan’s Nikkei 225 Stock Index was closed today for the Autumnal Equinox Day holiday. The markets will reopen on Wednesday.

Pre-Market U.S. Stock Movers

Kenvue (KVUE) climbed more than +4% in pre-market trading even after President Trump linked acetaminophen, the active ingredient in the company’s painkiller Tylenol, to autism. Kenvue’s spokesperson said that “independent, sound science clearly shows that taking acetaminophen does not cause autism.”

Boeing (BA) gained over +2% in pre-market trading after securing the largest-ever order from Uzbekistan Airways for up to 22 of its 787 Dreamliner jets.

CoreWeave (CRWV) rose over +2% in pre-market trading after Wells Fargo upgraded the stock to Overweight from Equal Weight with a price target of $170.

Lam Research (LRCX) fell more than -1% in pre-market trading after KeyBanc downgraded the stock to Sector Weight from Overweight.

Firefly Aerospace (FLY) plunged over -10% in pre-market trading after the rocket developer posted weaker-than-expected Q2 results.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Tuesday - September 23rd

Micron (MU), AutoZone (AZO), Worthington Industries (WOR), AAR (AIR), MillerKnoll (MLKN).