Tonight’s Highlights | U.S. Stocks Face Pressure for Third Straight Decline, Economic Data Weighs on Gold and Copper

After two days of losses, U.S. stocks are likely to open weak tonight. Fed Chair Jerome Powell’s comment that “stock valuations are quite high” still lingers, and the market needs a fresh catalyst to turn the page.

 

As of this writing, Nasdaq 100 futures (2512 contract) are down 0.67%, S&P 500 futures are off 0.47%, and Dow futures are down 0.25%.

 

(Nasdaq Index daily chart, Source: TradingView)

 

The latest economic data, just released, is a mixed bag. Q2 U.S. GDP growth (annualized) hit 3.8%, beating the 3.3% forecast, and weekly jobless claims came in below expectations. But the Q2 core PCE price index rose 2.6% annualized, also above estimates. The data had little impact on futures, but gold prices spiked pre-market, and commodities like copper and crude oil took a hit.

 

(Spot gold minute chart, Source: TradingView)

 

This week, investors are eyeing Friday’s monthly PCE data, while the deadline for a potential U.S. government shutdown looms closer. Polymarket’s latest odds show a 76% chance of a government shutdown in 2025, with a 63% probability before October 1.

 

 

Bank of America economist Stephen Juneau said, “Congress is in recess this week, and the September 30 deadline to avoid a shutdown is approaching fast. The risk of a government shutdown is real and growing.” The White House is reportedly playing hardball, threatening permanent layoffs of some federal workers if Democrats don’t back a spending bill by October 1.

 

Also pre-market Thursday, crypto market volatility is grabbing mainstream attention. Ethereum dropped over 4%, falling below the $4,000 mark. Slowing institutional inflows and bearish technical signals may be driving this pullback.

 

According to Deribit, over $17 billion in Bitcoin-related open interest contracts and ~$5.3 billion in Ethereum contracts are set to expire this weekend, which typically spikes volatility.

Other Market News

Google to Launch Android PC Operating System Next Year  

 

At Qualcomm’s Snapdragon launch event early today, Google announced plans for an “Android for PC” operating system next year, integrating Gemini and Android mobile features.

 

HSBC, IBM Validate Quantum Computing Boost for Bond Trading  

 

On Thursday, HSBC announced that, in collaboration with IBM, a hybrid quantum-classical computing approach improved bond trade execution probability by up to 34% compared to traditional methods. IBM’s stock rose over 3% pre-market.

 

OpenAI Reportedly Seeking Head of Advertising  

 

Newly appointed OpenAI applied business CEO Fidji Simo is reportedly searching for a leader to oversee ChatGPT’s advertising business, managing all monetization efforts, including subscriptions.

 

Circle President: Exploring Reversible Crypto Transactions  

 

Circle’s president, Heath Tarbert, said the second-largest stablecoin issuer is researching reversible crypto transactions. A refund mechanism for fraud or disputes could help integrate stablecoins into mainstream finance.