What's Happening

September is often considered one of the toughest months for stock investors but after posting gains for seven straight months, U.S. markets are looking to extend the rally into September. 

U.S. stock futures are higher this morning along with Asian and European equities as investors bet on a resilient economic recovery from the pandemic. Treasury yields also rose.

According to CFRA, the S&P 500 has been positive just 45% of the time in September going back to World War II. The S&P has not had a 5% correction since last October.

New economic data out today may help guide markets on the strength of the recovery. ADP released its closely watched private payrolls report, which showed private-sector employers added just 374,000 jobs in August, significantly below expectations of 600,000, after a disappointing 330,000 jobs in July. The report comes ahead of the government’s August payroll data due on Friday. 

We’ll also get a read of manufacturing when the ISM releases its Purchasing Managers Index for August. It is expected to show a slight decline from July. A report from the Census Bureau on Construction spending for July is expected to show a slight gain from June.

Oil prices rose past $69 a barrel ahead of an OPEC+ meeting to discuss oil production policy.