S&P 500 Futures Edge Up as Fed Cut Looms

S&P 500 e-minis rose 0.1% as traders priced in a 25 bps US Fed rate cut this week while trimming odds of a larger move. Asian stocks were mixed, with Japan shut for a holiday, South Korea’s Kospi hitting a record, and Pop Mart sliding up to 9% on Labubu bubble concerns after a J.P. Morgan downgrade. US–UK talks on technology and nuclear deals, fresh US–China trade discussions in Madrid, and softer Chinese industrial and retail data added to market focus.

Equities

The FTSE 100 closed 0.2% lower on Friday, reversing earlier strength but still securing a second weekly gain. Losses came after UK data showed flat GDP in July, reinforcing caution about the domestic outlook. Healthcare shares were weak, with AstraZeneca slipping 1.4% after an industry body warned about difficult trading conditions across the sector. BP shed 1% as energy stocks eased, while precious metals miners lost ground, with Fresnillo down 1.8% as bullion prices steadied. Consumer staples also pulled the index lower: Diageo declined 1.9% and JD Sports Fashion fell 2.2% to the bottom of the benchmark.

Aerospace and defence shares gained around 1% overall, reaching fresh highs, helped by BAE Systems, which advanced 1.7%. Utilities were also stronger, with United Utilities and SSE both up 1.6% as investors sought steady cashflow plays. Industrial miners found support from firmer copper prices, with Glencore adding 1.6%. In the mid-cap space, Ocado dropped 19.9% after US partner Kroger signalled it may scale back investment in automated warehouses, putting pressure on the retailer’s growth ambitions. JTC surged 15.8% to a record peak after confirming talks with Warburg and Permira about a potential transaction.

On Wall Street, major indices set record highs on Thursday. The S&P 500 rose 0.85% to 6,587.47, the Nasdaq added 0.72% to 22,043.08, and the Dow climbed 1.36% to 46,108.00. Tesla jumped 6% after further interest in its shares lifted sentiment across the EV sector. Micron Technology rallied 7.5% to $150.55 after Citigroup raised its price target, helping the semiconductor index to an all-time high.

Media stocks saw large swings. Warner Bros Discovery surged 29% after a report said Paramount Skydance was preparing a majority cash offer for the studio. Centene rose 9% after reaffirming its annual profit forecast and reporting steady quality ratings for its Medicare plans. In contrast, Oracle slipped 6.2% as investors locked in profits after the previous session’s sharp rise, and Delta Airlines fell 1.55% after reiterating its guidance. Gains in JPMorgan and Goldman Sachs supported the Dow, both closing more than 1% higher.

Forex & Commodities

The dollar eased ahead of a busy week for central banks, slipping to 97.58 against a basket of peers in early trading. Sterling edged higher to $1.3565, while the euro softened to $1.1729 after Fitch’s downgrade of France’s sovereign credit rating to its lowest level on record. The yen strengthened to 147.44 per dollar ahead of the Bank of Japan’s policy meeting, with focus on comments from Governor Kazuo Ueda about the prospect of rate adjustments. The Australian dollar moved up to $0.6663, close to a ten-month peak, and the New Zealand dollar advanced to $0.5964. China’s onshore yuan was steady at 7.1213 per dollar despite data showing factory output and retail sales in August grew at their weakest pace since last year.

Spot gold held firm at $3,642 per ounce in Asian hours after hitting a record $3,673 last week. Traders took some profits while awaiting the Federal Reserve’s meeting starting Tuesday, with a quarter-point rate cut expected. Analysts noted the risk of short-term pullbacks, though longer-term forecasts remain supportive, with Goldman Sachs reiterating a $4,000 mid-2026 target. Silver edged up to $42.20, platinum rose to $1,397 and palladium ticked up to $1,198.

Oil prices climbed further after weekend Ukrainian drone attacks on Russian refineries and export terminals. Brent crude was quoted at $67.46 a barrel early Monday, while West Texas Intermediate reached $63.17. Damage to key facilities such as Primorsk and Kirishi raised concern about potential supply disruption, even as OPEC+ prepares to expand output. Investors are also watching US–China trade talks in Madrid and the Fed’s September 16-17 policy decision.