Futures on equities flat after S&P 500 suffered worst month since March 2020

Stock futures were flat in overnight trading on Thursday after the S&P 500 recorded its worst month since March 2020.

Futures contracts on the Dow Jones Industrial Average rose only 15 points. S&P 500 futures were little changed and Nasdaq 100 futures edged up 0.1%.

The market closed a tumultuous September as inflation fears, slower growth and rising rates intensified. The S&P 500 ended the month down 4.8%, breaking a seven-month winning streak. The Dow Jones and the Nasdaq Composite fell 4.3% and 5.3%, respectively, suffering their worst months of the year.

“A combination of slower growth, less accommodative monetary policy, headwinds in China, waning fiscal stimulus and lingering supply chain bottlenecks have all conspired to weigh on sentiment among consumers. investors heading into fall and 4Q21, “Chris Hussey, managing director of Goldman Sachs, said in a note.

Ten of the 11 sectors of the S&P 500 suffered losses in September, dragged down by a 7.4% monthly drop in materials inventories. Energy is the best performer of the month, gaining more than 9%.

Investors await key inflation data due Friday to assess the state of price pressures as the economy recovers from the pandemic. The basic personal consumption expenditure price index, the measure of inflation the Federal Reserve uses to shape its policy, is expected to rise 0.2% in August and 3.5% year-on-year, according to the reports. economists surveyed by Dow Jones.

The measure of inflation jumped 3.6% year-on-year in July, reaching its highest level since May 1991.

“As we wrap up the third quarter and look ahead, investors will likely need to remain nimble as the economic recovery continues to zigzag,” said Mike Loewengart, Managing Director of Investment Strategy at E-Trade Financial .

Congress was set to prevent a government shutdown on Thursday. Both the Senate and the House passed a short-term appropriation bill that would allow the government to run until December 3 and sent it to President Joe Biden for him to sign.