U.S. stock index futures were little changed early Tuesday as traders focused on key economic indicators later in the week.
On Monday, the Dow Jones Industrial Average DJIA fell 62 points, or 0.16%, to 39,069, the S&P 500 SPX fell 19 points, or 0.38%, to 5,070, and the Nasdaq Composite Index fell 21 points, or 0.13%. It fell to 15,976. .
what drives the market
Overall index futures were weak, with interim trading extended to a second day after the S&P 500 rose 11.4% in the past three months alone.
“U.S. markets were driven by a generally strong earnings season and renewed excitement about the potential of AI with major indexes hovering near record highs,” said Richard Hunter, head of markets at Interactive Investor. After a solid performance, we took a breather.”
The cautious tone also comes as investors focus on economic data from the U.S. Federal Reserve's upcoming meeting that could reveal when it will cut interest rates.
“The ongoing interest rate debate continues into the new week without any major resolution or change,” said Stephen Innes, managing partner at SPI Asset Management.
“Monday saw a familiar landscape for market participants, as traders and investors braced themselves for a busy data calendar, with updates on the Fed's Preferred Price Index (PCE) receiving significant attention. I didn't really feel the colors,” he added.
A significant rise in the PCE (Personal Consumption Expenditure Price Index), which is expected to be released before the market opens on Thursday, could finally dash lingering hopes that the Fed will cut interest rates in May. be.
The rest of the week is jam-packed with comments from Fed officials, but on Tuesday only Michael Barr, the Fed's vice chairman for oversight, is scheduled to speak at 9:05 a.m.
Markets have been reacting in recent weeks to a concerted effort by Fed officials to dispute the idea that rate cuts could begin next month. Their campaign pushed the 10-year Treasury yield from about 3.8% to its current 4.26%.
U.S. economic updates scheduled for Tuesday include January durable goods orders at 8:30 a.m. ET, December S&P Case-Shiller home price index at 9 a.m., and February consumer confidence at 10 a.m. included.
Meanwhile, apart from monetary policy, investors continue to react to corporate news, with the latest earnings reports mixed.Tuesday's sentiment could be buoyed by a 10% rise in Zoom Video Communications stock
ZM
after the video conferencing company posted positive results late Monday.
However, Unity Software stock
U
Shares fell 20% due to lower revenue and outlook for the app monetization group.
Companies to report results on Tuesday include AutoZone
Azo
,
lowe's
low
and cracker barrel
low
Devon Energy before the opening bell and after the closing.
DVN
,
first solar
FSLR
and kava
kava
.
