US Stock Futures Fall With Clinton-Trump Showdown Looming

New York (Sept 26)  Stock futures fell on Monday as Wall Street's attention shifted from central bank policy to the looming presidential debate.

S&P 500 futures were down 0.51%, Dow Jones Industrial Average futures fell 0.5%, and Nasdaq futures slid 0.58%.

The first presidential debate will likely add some volatility on Monday as traders fret over Republican presidential candidate Donald Trump's economic policies and how they could impact the global economy. Trump will join Democratic presidential candidate Hillary Clinton in Hampstead, N.Y., for the debate hosted by ABC's Lester Holt. The presidential debate is the first of three scheduled before voters head to the polls on Nov. 8.

"There are two political footballs to keep your eyes on: health care and energy," Stephen Guilfoyle, chief market economist at Stuart Frankel & Co., wrote in a note. "Depending on who appears to come out on top tonight could provide direction to these two sectors. Energy is a regulation play, while health care becomes about the perceived success or failure of Obamacare. These two candidates have very different ideas on these two areas, and an upper hand on Tuesday morning for either candidate could provide movement."

The S&P 500 ended Friday with weekly gains of more than 1% after the Federal Reserve opted to hit pause again on interest rates. Fed Chair Janet Yellen said the case for a rate hike had strengthened, but opted for caution before pulling the trigger. Markets are now pricing in a December rate hike.

Crude oil prices moved higher ahead of the three-day International Energy Forum. Major oil producers, including energy ministers from Organization of Petroleum Exporting Countries will convene in Algeria from Sep. 26-28 to debate solutions to the current oil crisis. A production freeze, rather than an output cut, looks like the most likely solution for producers to agree on. An agreement has so far been out of grasp with producers wary to cede market control even as prices tanked.

Source: TheStreet