Dow Jones Today: Stock Futures Point to Higher Open as Market Looks to Recover From Selloff
Major Indexes are poised to open higher Tuesday, recovering from the previous session’s selloff, as investors await key economic data and earnings reports in the coming days.
Futures tied to the Dow Jones industrial Average were up 0.2%, while those linked to the S&P 500 and Nasdaq 100 rose 0.4% and 0.5%, respectively. The major indexes, which entered the week near all-time highs, tumbled on Monday as oil prices surged amid concerns about conflict in the Middle East and expectations for big interest rate cuts subsided following last week’s strong jobs report.
Large-cap technology stocks were mostly higher in premarket trading Tuesday, led by AI chipmaker Nvidia (NVDA), which was up nearly 2%. Apple (AAPL), Amazon (AMZN), Meta Platforms (META) and Alphabet (GOOGL) were also moving higher, while Microsoft (MSFT) was down slightly. Nvidia surpassed Microsoft yesterday to become the second-largest company by market capitalization.
Shares of PepsiCo (PEP) were down about 0.5% after reporting quarterly revenue and earnings that came in short of analysts’ expectations. The earnings reporting season kicks into high gear later in the week when big banks are scheduled to report their results.
The economic data calendar is light on Tuesday but picks up significantly later in the week with the release of closely watched inflation data and the latest reading on consumer sentiment. Investors will be watching the numbers closely for further confirmation that the economy is on sound footing, while also looking for clues about how aggressive the Federal Reserve will be as it cuts interest rates. The Fed cut its benchmark fed funds rate for the first time in four years last month.
Following the strong jobs repot on Friday, market participants now believe it’s likely the Fed will make two quarter-percentage-point cuts in the benchmark rate before the end of the year, according to fed fund futures trading data. Before the jobs report, markets were pricing in the likelihood that the central bank would announce a half-point cut at the Fed’s next policy meeting in November, as well as a cut in December.
The yield on 10-year Treasurys was little changed at 4.03% early Tuesday, after jumping above 4% on Monday for the first time in two months as market hopes for big rate cuts dimmed.
Crude oil futures were down more than 2%, giving back some of the gains that have been posted over the past week amid rising concerns that an escalation of the conflict in the Middle East could threaten global oil supply.
Gold futures were up slightly at around $2,670 an ounce, while bitcoin was down about 1% to around $62,500.