U.S. stock futures were pointing to a higher Wall Street open Tuesday, the first day of the fourth quarter and the first day of the new month. Keep in mind, October is historically the most volatile month of the year for stocks. During preelection years dating back to 1950, the S&P 500 was flat for the month. The index gained 1.7% in September, after a rough August, and nearly 1.2% for Q3. Ahead of Tuesday trading, the S&P 500 was up nearly 19% so far in 2019.
Strategists think the stock market should have a better fourth quarter after a range-bound third quarter, even with turbulence that could come from an impeachment inquiry and ongoing trade tensions with China. Even if the Senate takes up impeachment, there's little chance the president would be convicted by the GOP-controlled chamber. The trade war could break the calm, but it remains a wild card, with U.S. and Chinese officials expected to meet Oct. 10.
Americans by a narrow margin oppose impeachment hearings to remove President Donald Trump from office, according to the latest CNBC All-America Economic Survey. However, the CNBC poll of 800 Americans nationwide conducted last week found a significant shift where fewer are opposed to impeachment. The survey also found a large decline in the president's overall and economic approval ratings.
Trump sought help from Australia's prime minister to investigate the origins of former special counsel Robert Mueller's Russia investigation. The news comes on top of allegations that Trump pushed the Ukrainian president to investigate Joe Biden's family. The House Intelligence Committee has subpoenaed Trump's personal attorney, Rudy Giuliani, for documents related the Ukraine matter.
Chinese President Xi Jinping said Tuesday in a speech commemorating the 70th anniversary of the Chinese Communist Party's rule that no force could sway China's development. Celebrations, which boasted one of Beijing's largest military parades, are taking place as China faces economic and political challenges from the trade war with the U.S. China's National Day was marked by pro-democracy protests in Hong Kong. Police in the Chinese territory fired water cannons to break up the increasingly chaotic crowds outside government buildings and across the city.