U.S. stock futures are headed lower on Monday after the jobs data-induced strength seen in the final session of last week. The mood has been rendered cautious as traders await a few key first-tier economic data and the minutes of the Federal Reserve’s September rate-setting meeting.

The imminent third-quarter reporting season could force traders to stay on the sidelines as corporate profit growth has been a major driving factor for the market amid economic uncertainties. JP Morgan Chase & Co. (NYSE:JPM) kickstarts the big bank reporting season this Friday.

The Middle East tensions that have sent oil on the boil could also be a spot a bother for traders even as they look ahead to soft-landing, facilitated by the Fed’s rate cuts.

In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) slipped 0.57% to $569.72 and the Invesco QQQ ETF (NASDAQ:QQQ) moved 0.69% lower to $483.97, according to Benzinga Pro data.

Cues From Last Week:

U.S. stocks kept the winning streak going, as the major indices rose for a fourth straight week but the gains were much more modest and came amid volatility. The 30-stock Dow Jones Industrial Average finished at a fresh record. Small-cap stocks, however, posted a moderate decline for the week.

Stocks started the week higher amid caution but pulled back on Tuesday, dragged by geopolitical tensions, worries concerning the dockworkers’ strike and weak manufacturing data. The major averages reversed course on Wednesday, despite ongoing headwinds, but retreated on Thursday as traders processed a mixed set of economic data and remained cautious amid Middle East tensions and the port strike.

Stronger-than-expected non-farm payroll gains, although generating some sell-off in early trading, lifted the averages higher thereafter, helping them to recoup all their losses for the week.

Insights From Analysts:

The market could be stuck in the recent trading range until the November election, said Ivan Martchev, investment strategist at Navellier & Associates. The strategist said the same type of trading seen in July, when marginal new highs were met with selling into strength, most notably in the tech sector, is repeating now. There has been rotation into value stocks but the pace of this rotation has been slow in the recent week, he said.

The strategist blamed the situation in the Middle East for the profit-taking. That said, a large downside is unlikely, he said.

“But it does suggest one shouldn't look for the market to run higher or make anything more than marginal new highs before the election in early November,” Martchev said.

“We could be in for a continuation of the trading range that started in the middle of July.”

Carson Group Chief Investment Strategist Ryan Detrick also raised a red flag. The S&P 500 Index rose 34.4% year-over-year in September this year, and six times in the past, the index had gained over 30% in September versus the year ago, the strategist said. Only once out of the six times, did the index post gains for October and the average return for the fourth quarter was also below-average, he added.

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Upcoming Economic Data:

A slew of Fed speeches strewn through the week could also create ripples in the market.

Stocks In Focus:

Commodities, Bonds And Global Equity Markets:

Crude oil futures rose over 2%, and in the early New York session it topped the $76-a-barrel mark. Gold futures rose modestly but traded shy of its record high. Bitcoin (CRYPTO: BTC) rose over 1% in the past 24 hours and traded above $63K.

The 10-year Treasury note yield topped 4% by virtue of its 2.1-basis-point climb.

The Asian markets reacted to the strong U.S. jobs data and ended mostly higher, led by Japan’s Nikkei 225 average, which climbed 1.8%. On the other hand, the Indian and New Zealand markets retreated.

European stocks traded mostly lower early hours of Monday.

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