US Stock Market Outlook: Awaiting Macro Data, Strong Hawkish Signals from Fed, Mixed Futures.

US Stock Market Pre-Market Update

On Monday morning, US stock index futures showed mixed trends. The Dow futures fell by 0.05%, while the Nasdaq futures rose by 0.21%, and the S&P 500 futures increased by 0.09%.

Major Tech Stocks Performance

In pre-market trading, major tech stocks exhibited varied movements.

• Google (GOOGL) surged nearly 5%.
• Amazon (AMZN) and AMD both rose close to 1%.
• Apple (AAPL) saw a decline of nearly 1%.

Chinese Stocks Update

Most popular Chinese stocks were up in pre-market trading:

• Alibaba (BABA) increased by over 3%.
• Pinduoduo (PDD) and JD.com (JD) rose by over 1%.
• Xpeng Motors (XPEV) dropped over 3%, while Pony.ai (PONY) fell over 2%.

Quantum Computing Sector

The quantum computing sector was active, with notable gains:

• Quantum Computing (QUBT) surged over 17%.
• SEALSQ Corp (LAES) rose over 4%.
• Arqit Quantum (ARQQ) and D-Wave Quantum (QBTS) both increased by over 2%.

Lithium Battery Stocks

Lithium battery stocks showed strength:

• Sigma Lithium (SGML) jumped over 22%.
• Albemarle (ALB) and Lithium Americas (LAC) rose over 4%.
• Sociedad Química y Minera (SQM) increased by over 3%.

Cryptocurrency Mining Companies

Cryptocurrency mining companies also saw gains:

• HIVE Digital Technologies (HIVE) rose over 4%.
• Applied Digital (APLD) increased by over 3%.

Earnings Reports and Company News

• Google (GOOGL) saw a significant pre-market rise of nearly 6% after Berkshire Hathaway disclosed a new stake of 17.85 million shares, making it the 10th largest holding.

• Alibaba (BABA) launched the "Qianwen APP," aiming to establish a strong presence in the AI market, which contributed to its pre-market rise.

• Xpeng Motors (XPEV) fell over 4% after reporting Q3 revenue of 20.38 billion yuan, slightly below market expectations.

• Luckin Coffee (LKNCY) reported a 50% year-on-year increase in Q3 revenue, but net profit declined by 1.9%.

Market Outlook

Traders are preparing for a wave of macroeconomic data that could influence the Federal Reserve's interest rate decisions. The upcoming reports include the September non-farm payrolls, which may reveal stronger-than-expected job growth.

Federal Reserve Interest Rate Expectations

Recent comments from Federal Reserve officials indicate a divided stance on potential rate cuts in December, with only a few members supporting the idea. The market remains cautious as inflation pressures persist.

Conclusion

As the market faces critical support levels, analysts warn of potential adjustments if key thresholds are breached. The upcoming economic data will be crucial in shaping market sentiment and expectations for future monetary policy.