We’re about to get a clearer (and very delayed) picture of the US economy
US stock futures were lower Tuesday morning as investors awaited a slew of economic data.
Dow futures fell 34 points, or 0.07%. S&P 500 futures fell 0.04%. Nasdaq 100 futures fell 0.11%.
Stocks are coming off two days in the green. The tech-heavy Nasdaq soared 2.69% on Monday, posting its best day since May.
Wall Street is trying to discern whether the Federal Reserve will lower its benchmark interest rate at its policy meeting in December. Traders on Tuesday morning were pricing in an 81% chance that the Fed cuts rates, according to CME FedWatch.
New York Fed President John Williams and San Francisco Fed President Mary Daly in recent days have suggested they could support a rate cut in December, which helped send stocks higher on Friday and Monday.
Stock investors like lower interest rates because it encourages spending and business activity, boosting corporate profits, while lowering bond yields, making stocks relatively more appealing.
“During this holiday-shortened week, investors will receive a cornucopia of data now that the government is open again,” Ed Yardeni, president of Yardeni Research, said in a note. “Some of the data will be a bit stale. But they should indicate how [the third quarter] ended for the economy.”
CNN’s Fear and Greed Index hovered in “extreme fear.”