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Exchange-Traded Funds, Equity Futures Lower Pre-Bell Monday Amid AI Pullback

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The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.6%, and the actively traded Invesco QQQ Trust (QQQ) was 1.5% lower in Monday's premarket activity as warnings from AI industry leaders weighed on technology shares.

US stock futures were also lower, with S&P 500 Index futures down 0.6%, Dow Jones Industrial Average futures slipping 0.2%, and Nasdaq futures retreating 1.5% before the start of regular trading.

In premarket activity, bitcoin was up by 0.8%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.9% higher, Ether ETF (EETH) retreated 1.1%, and Bitcoin & Ether Market Cap Weight ETF (BETH) gained 0.7%.

Power Play:

Technology

The State Street Technology Select Sector SPDR ETF (XLK) retreated 2.5%, the iShares US Technology ETF (IYW) was flat, and the iShares Expanded Tech Sector ETF (IGM) was down 2%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was inactive, while the iShares Semiconductor ETF (SOXX) fell by 5.6%.

Elastic (ESTC) shares were up more than 7% in premarket activity after the company said Friday that it launched the serverless Elasticsearch Vector Database with optimized defaults to enable developers to create and ship vector search applications faster.

Winners and Losers:

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) advanced 1%, the Vanguard Health Care Index Fund (VHT) was up 0.4%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was down 0.2%.

Scholar Rock (SRRK) stock was 6% higher after the company said Friday it received US Food and Drug Administration approval for Isembyld to treat spinal muscular atrophy in certain patients aged two years and above.

Financial

The State Street Financial Select Sector SPDR ETF (XLF) advanced 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.6%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was flat.

Baldwin Insurance Group (BWIN) shares traded up 6% after the company said it has entered into a definitive agreement through which an entity formed by Sequence Holdings and the Dell Family Office will acquire a majority interest in the company for about $7.70 billion in cash.

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) retreated 1.4%, while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.

SpaceX (SPCX) shares were down more than 2% before the opening bell. The company's Chief Executive Elon Musk said Sunday on social media platform X that he is "highly confident" the company will launch Nvidia's (NVDA) Vera Rubin NLV72 artificial intelligence computers in space next year.

Energy

The iShares US Energy ETF (IYE) gained 0.9%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 1.5%.

Occidental Petroleum (OXY) stock was up more than 2% before market open after Wells Fargo lifted the company's price target to $82 from $79.

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 1%, the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was inactive, and the iShares US Consumer Staples ETF (IYK) was 0.3% higher. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.5%. The VanEck Retail ETF (RTH) and the State Street SPDR S&P Retail ETF (XRT) were inactive.

Kenvue (KVUE) and Kimberly-Clark (KMB) shares were up 1% after Reuters reported Kimberly-Clark is preparing potential asset sales to address EU antitrust concerns over its proposed acquisition of Kenvue.

Commodities

Front-month US West Texas Intermediate crude oil was up by 4.7% at $104.79 per barrel on the New York Mercantile Exchange. Natural gas was 2.3% higher at $2.90 per 1 million British Thermal Units. The United States Oil Fund (USO) rose 3.1%, while the United States Natural Gas Fund (UNG) advanced 1.5%.

Gold futures for November were down by 1.9% at $4,324.40 an ounce on the Comex. Silver futures fell 2.5% to $63.57 an ounce. SPDR Gold Shares (GLD) decreased 1.8%, and the iShares Silver Trust (SLV) was 2.3% lower.

What else is happening in Commodities?

Commodities

US Natural Gas Prices Snap 4-Week Winning Streak Amid Steady Supplies, Easing Weather Momentum

After four straight weeks in the green, US natural gas prices were down this week amid steady supplies and easing weather-related momentum.In the futures market, the Nymex front-month contract ended the week at $2.820 per million British thermal units on Friday, down from $2.939/MMBtu on Sep. 4.Natural gas spot prices declined to $2.81/MMBtu on Wednesday, down $0.07/MMBtu, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released on Thursday.This was primarily attributed to diverging regional weather, with cooler-than-average temperatures in the West helping offset above-average temperatures across Texas and the Midwest, leading to a 1.5%, or a 1.5 billion cubic feet per day decline in power consumption demand, according to data from S&P Global.Meanwhile, LNG export feedgas flows held steady at 19.6 Bcf/d, which was significantly above the 30-day moving average for this period, at 18.53 Bcf/d, according to the Bloomberg LNG Feedgas Model.Total gas supply remained mostly flat over the week, with a 0.4 Bcf/d, or 7%, decline in imports from Canada offset by a 0.4 Bcf/d, or less than 1% increase in domestic dry gas output.Net injection into storage for the week ended Sep. 4 was 40 Bcf, up from last week's 30 Bcf, bringing total working gas inventories to 3,254 Bcf, according to the EIA's weekly inventory data.The net build was ahead of forecasts at 35 Bcf but well below last year's 71 Bcf and the five-year average for this period, at 52 Bcf, according to data compiled by Investing.com, making it a fairly mixed storage build.At 3,254 Bcf, inventories were 148 Bcf, or 5% above the five-year average for this period, but 79 Bcf, or 2% below the same time last year.All regions reported a net injection during the week, barring South Central, which reported a net withdrawal of 7 Bcf. The East and Midwest led in injections, at 20 Bcf and 18 Bcf, respectively.According to Pinebrook Energy Advisors, the storage data shows that weather is set to play "a reduced role as a price driver" as September progresses and temperatures begin to moderate, that is, before winter makes landfall, leading to significant heating gas demand.A total of 36 LNG carriers departed US ports during the week, up by four from the prior week, with a total combined capacity of 137 Bcf, up 10 Bcf from last week.The US gas rig count increased by two from 130 the previous week to 132 in the week ending Sep. 11, according to data from Baker Hughes (BKR) released Friday. That compares with 118 gas rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, increased by six to 798 from 792 the previous week.In international markets, European TTF gas prices averaged $25.47/MMBtu for the week ended Sep. 9, $1.59/MMBtu above the prior week. Meanwhile, the Japan-Korea Marker averaged $24.30/MMBtu, about $0.97/MMBtu above the prior week.Meanwhile, the EIA expects natural gas consumption in the electric power sector to reach a record in 2027 as electricity demand continues to grow, according to its monthly Short-Term Energy Outlook for July on Tuesday.The agency forecasts that natural gas use for power generation will increase by 2% in 2026 and by another 4% in 2027, to a record 38.1 Bcf/d. Monthly demand is expected to reach an all-time high of 50.6 Bcf/d in July 2027.Higher electricity demand, additional natural gas-fired generating capacity and relatively low natural gas prices will drive the increase, the EIA said.US gas-fired capacity is expected to reach 508 gigawatts by the end of 2027, up 3% from 2025.Summer natural gas demand for power generation is expected to average 42.2 Bcf/d this year, up 0.5 Bcf/d from summer 2025, before rising to 46.3 Bcf/d in summer 2027.Renewable generation will supply much of the increase in electricity output, while gas plants will continue to meet peak demand, according to the STEO.The EIA expects total US natural gas consumption to increase by 3.1 Bcf/d from 2025 to 2027, with the electric power sector accounting for 2.3 Bcf/d, or 7% of the increase.Weather remains the biggest uncertainty, as hotter summer temperatures could further boost electricity demand.Record Permian production should keep natural gas inventories above the five-year average and limit price gains, the agency said.Working gas inventories are expected to reach 3,966 billion cubic feet by the end of October, 5% above the five-year average.Above-average natural gas inventories heading into winter are expected to keep Henry Hub spot prices at $3.57/MMBtu in Q4 2026, down 5% from the same quarter a year earlier, the EIA said.EIA forecasts the Henry Hub natural gas spot price will ease to $3.43/MMBtu in 2026 and $3.28/MMBtu in 2027, down from $3.53 in 2025, as robust production growth outpaces rising demand.

$BKR
Commodities

Russia To Attend G20 Energy Abundance Ministerial in Houston

Russia will attend the G20 Energy Abundance Ministerial in Houston, Texas, as a G20 member, a White House official toldin an emailed response on Friday.The official also noted that Russia attended the Treasury G20 meeting in Asheville, North Carolina.The G20 Energy Abundance Ministerial will run from Monday through Wednesday, with Interior Secretary Doug Burgum, Energy Secretary Chris Wright and White House official Jarrod Agen among the US participants, according to a Reuters report Friday.Energy ministers from Europe and Asia are expected to join the Houston gathering. The European Union is entering winter with unusually low gas inventories, while its plans to reduce Russian energy dependence face setbacks, according to the report.

Commodities

US Natural Gas Update: Futures inch Down on Ample Supply, Milder Weather Outlook

US natural gas futures prices declined slightly in after-hours trade Friday, pressured by plentiful supplies and forecasts for moderating temperatures later this month.The front-month Henry Hub contract and the continuous contract each lost 0.49% to $2.820 per million British thermal units.In earlier trade on Friday, the October contract hit a low of $2.773/MMBtu before recovering.Forecasts of cooling temperatures put pressure on prices. Barchart, citing Commodity Weather Group data, said above-normal temperatures are expected across the South and Southeast through Sept. 20, supporting near-term demand, but most forecasters expect temperatures to cool thereafter.Aegis Hedging pegged average national temperatures at about 76 degrees Fahrenheit Friday, with readings expected to fall by 6 degrees or more in the second half of the month.Cooling demand and powerburn are expected to decline accordingly. Powerburn fell to 46.8 Bcf/d Friday from seasonally high levels of above 50 Bcf/d as temperatures began moderating across the northern US, Gelber & Associates said.Looking further ahead, heating demand may be muted this winter as NOAA's Climate Prediction Center raised the probability of a historically strong El Nino this fall, favoring above-normal temperatures across much of the northern US during winter 2026/27.On the export side, US LNG exports continued to support domestic gas demand. Barchart, citing BNEF data, said feedgas flows to US LNG terminals were near capacity at 19.8 Bcf/d, up 1.5% from the prior week. Annual maintenance at Cove Point LNG could reduce Appalachian feedgas demand by about 850 MMcf/d for up to three weeks from Sept. 19.US output and inventory levels kept the market amply supplied and pressured prices. Natural gas production remained elevated at 112.7 Bcf/d, keeping supply ample despite Canadian imports falling to 4.4 Bcf/d, Gelber said. BNEF said production was up 4.4% year over year.On Thursday, the US Energy Information Administration reported a 40 Bcf storage injection for the week ended Sept. 4, bringing total inventories to 3,254 Bcf, or 5% above the five-year average but 79 Bcf below year-earlier levels.RBC Capital Markets expects storage to peak near 3.9 trillion cubic feet this fall, about 120 Bcf above the 10-year average but 60 Bcf below last year's level. It forecasts a 35-40 Bcf injection in next week's EIA report, below the seasonal norm of 74 Bcf.