WASHINGTON (dpa-AFX) - Following the rebound seen in the previous session, stocks may show a lack of direction in early trading on Monday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures up by just 0.1 percent.
Traders may be reluctant to make significant moves ahead of the U.S. elections on Tuesday, as Vice President Kamala Harris faces off against former President Donald Trump.
With polls showing an extremely tight race between Harris and Trump, the outcome of the presidential election may not be known on Election Day.
The results of House and Senate races are also likely to be in focus, as the makeup of Congress could affect how much the next president can accomplish.
Traders are also looking ahead to the Federal Reserve's monetary policy decision, which is due to be announced on Thursday.
The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.
Among individual stocks, shares of Nvidia (NVDA) are seeing notable pre-market strength on news the AI darling will replace Intel (INTC) in the Dow Jones Industrial Average prior to the start of trading on Friday.
Paint maker Sherwin-Williams (SHW) is also surging by 4.8 percent in pre-market trading following news it will replace Dow Inc. (DOW) in the Dow Jones Industrial Average.
S&P Dow Jones Indices said the changes were initiated to ensure a more representative exposure to the semiconductors industry and the materials sector, respectively.
On the other hand, shares of Intel and Dow are likely to move to the downside on the news of their replacement in the blue chip index.
Not long after the start of trading, the Commerce Department is due to release its report on new orders for manufactured goods in the month of September. Factory orders are expected to decrease by 0.5 percent in September after dipping by 0.2 percent in August.
Following the sell-off seen during Thursday's session, stocks showed a strong move back to the upside in early trading on Friday. The major averages gave back some ground over the course of the trading day but remained firmly in positive territory.
The tech-heavy Nasdaq led the way higher, advancing 144.77 points or 0.8 percent to 18,239.92 after moving sharply lower over two previous sessions. The Dow also climbed 288.73 points or 0.7 percent to 42,052.19, bouncing off its lowest closing level in over a month, while the S&P 500 rose 23.35 points or 0.4 percent to 5,728.80.
Despite the rebound on the day, the major averages all moved to the downside for the week. The Dow dipped by 0.2 percent, while the S&P 500 and the Nasdaq slumped by 1.4 percent and 1.5 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday, with the Japanese markets closed for a holiday. China's Shanghai Composite Index jumped 1.2 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index is up by 0.5 percent, the French CAC 40 Index and the German DAX Index are both down by 0.1 percent.
In commodities trading, crude oil futures are surging $1.87 to $71.36 a barrel after rising $0.23 to $69.49 a barrel last Friday. Meanwhile, after edged down $0.10 to$2,749.20 an ounce in the previous session, gold futures are inching up $0.40 to $2,749.60 an ounce.
On the currency front, the U.S. dollar is trading at 152.01 yen versus the 153.01 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0896 compared to last Friday's $1.0834.
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