Last Week's Close

E-mini S&P 500 Futures (September): Settled at 4458.25, down 34.00 on Friday and 76.25 on the week

E-mini Nasdaq-100 Futures (September): Settled at 15,441.50, down 117.25 on Friday and 210.00 on the week

A new week, but the same overnight ramp. U.S. benchmarks are pointing higher ahead of the bell with Asia leading again. The Nikkei has gained 6.7% in the 10 days since Prime Minister Suga stepped down. Japan’s index is closing in on February’s high, the highest level since the 1990 crash. 

China’s Shanghai Composite is also at its highest since February after securing its 9th winning session in 11, now up nearly 5% on the month and 12% since the July low. Ironically, this unprecedented rally came during peak negativity for the region. However, unlike the state-owned-centric Shanghai Composite, the Hang Seng has absorbed the brunt of Beijing’s regulator crackdown and is still 17% from its February peak.

Domestically, the House’s tax proposal is front and center as Congress makes a push to pass President Biden’s agenda by September 27th. The Ways and Means Committee is looking to increase the corporate rate to 26.5% from 21% and foreign earnings to 16.5% from 10%, as well as a hike for the highest individual earners. The proposals, which ultimately fall short, face a tough battle and will need to pass on a very thin party line.

On Friday, Producer Price Index data accelerated to a fresh record in August. PPI is a leading indicator for the Consumer Price Index (CPI), which is due tomorrow at 7:30 a.m. CT. The Federal Reserve keeps a close eye on Core PCE and CPI as a bellwether for policy.

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