U.S. stock futures fell on Monday but were still headed for strong monthly and quarterly gains as investors waited to hear Jerome Powell speak in the run-up to the crucial monthly jobs report.
Dow Jones Industrial Average (YM=F) futures fell approximately 0.1%, after hitting an all-time high to end a strong week. S&P 500 futures (ES=F) fell 0.2%, while the tech-heavy Nasdaq 100 (NQ=F) futures fell 0.3%.
Wall Street indexes were still expecting a monthly gain heading into the final trading day of September, typically the cruelest month for stocks. The Federal Reserve's massive interest rate cut and signs of resilience in the U.S. economy have lifted sentiment, helping stocks post three straight weekly gains.
Investors are now preparing for the September jobs report, due out on Friday, which is seen as a posing an important test for the recent rally. The pressing question is how quickly the labor market is slowing, as the market weighs whether the Federal Reserve has acted aggressively to protect a healthy economy or to help a troubled one. Fed Chair Powell's comments on the economy's outlook Monday afternoon could help resolve that debate.
Read more: What the Federal Reserve's rate cut means for bank accounts, CDs, loans and credit cards
A growing number of profit warnings from automakers dampened sentiment early Monday. Shares of Stellantis (STLA, STLAM.MI) fell 13% after Chrysler's parent cut its margin outlook, citing supply chain disruption and weakness in China. General Motors (GM) and Ford (F) fell more than 3% together. Luxury carmaker Aston Martin (AML.L) also warned about its profits.
Overseas, China's benchmark stock index (000300.SS) posted its biggest gain since 2008, entering a bull market, as buyers rushed in ahead of a week-long holiday. Investors are seen fearing missing out on the momentum from Beijing's series of stimulus measures, which have also boosted U.S. confidence.
But in Japan, the Nikkei 225 (^N225) plummeted as Shigeru Ishiba's surprise victory as the likely future leader confounded investors betting on his pro-easing rival.
Oil prices wavered after rising as Israel stepped up its attacks on Lebanon, as traders weighed the likely boost from China's moves to boost the world's second-largest economy.
He also focused on California Governor Gavin Newsom's veto of the first US bill aimed at regulating AI on a large scale, seen as a victory for Big Tech.