The S&P 500 index has experienced its fourth consecutive weekly decline, dropping by 0.74% last week, largely due to Tesla (NASDAQ:TSLA)'s declining deliveries and production, as well as the ongoing United Auto Workers (UAW) strike affecting US automakers. The index's direction in the near future is expected to be influenced by key economic indicators such as the US ISM Services PMI and Nonfarm Payrolls.
Monday's volatility in the market was attributed to the aforementioned factors impacting Tesla and US automakers. The UAW strike continues to disrupt operations, while Tesla has seen a drop in both deliveries and production. These elements have contributed to the downward pressure on the S&P 500 index.
In addition to these immediate factors, the article also examined broader economic trends that could impact the index. Rising US Treasury yields, Personal Consumption Expenditures (PCE) data, Core inflation trends, and ADP’s September Employment Change data were all highlighted as potential influencers of market movement.
The potential implications of Federal Reserve (Fed) rate hikes were also discussed, referencing predictions from the CME Group’s FedWatch Tool. The tool is used by market participants to gauge the likelihood of changes in U.S. monetary policy.
Other considerations included the resumption of US student loan payments and geopolitical tensions with OPEC+. Both factors could create additional uncertainty in financial markets and potentially affect the S&P 500's performance.
Bank of America Securities' outlook on a potential year-end rally for the S&P 500 was mentioned as well. This perspective could offer some optimism for investors despite recent market turbulence.
Finally, the article listed several companies that are set to report their earnings this week. These reports could provide further insight into the state of various sectors within the index and potentially influence its future direction.
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