Check back for updates throughout the trading day
U.S. equity futures moved lower Tuesday, trading downside moves in both oil and the dollar, as investors look to weakening economic data that could suggest the domestic growth story faces stiffening headwinds into the second half of the year.
Stocks ended mixed at the close of the Monday session, with tech-lead gains for the S&P 500 and the Nasdaq partly offset by another pullback for the Dow Jones Industrial Average, tied in part to softening manufacturing data.
Wall Street will track the first of three job market data releases Tuesday as the Labor Department publishes its April Jolts report.
Spencer Platt/Getty Images
The Institute for Supply Management’s benchmark survey of factory activity in May showed another contraction, but the steeper-than-expected decline, as well as elevated price pressures, added to the market’s nascent stagflation concerns.
Related: The Fed doesn’t want to talk about stagflation. It might not have a choice.
The Atlanta Fed’s GDPNow forecasting tool, meanwhile, trimmed its current-quarter growth estimate to 1.8%, not far off the 1.3% pace the economy ended with over the first three months of the year.
The softening outlook, as well as a move by the OPEC cartel to open the door to the unwinding of past production cuts, pulled oil prices firmly lower in overnight dealing, with WTI crude futures for July delivery falling $1.64 to $72.58 per barrel.
Treasury note yields continued their recent slide, as well, with 10-year notes easing to 4.391% and 2-year paper trading at 4.810%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.14% higher in the overnight session but is trading near two-month lows at 104.291.
The moves are also boosting the odds of a Federal Reserve rate cut in September, as investors bet that slowing growth will lead to a rise in unemployment and softer inflation prospects.
The CME Group’s FedWatch now pegs the chances of a September reduction at around 61.5%, but sees no chances in the Fed’s current rate of 5.25% to 5.5% either next week or in July.
Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500 suggest a 25 point opening bell decline with a 190 point pullback for the Dow.
The tech-focused Nasdaq, meanwhile, is called 85 points lower, with an outsized gain for Intel (INTC) keeping the pullback in check.
More Wall Street Analysts:
Analysts compute new HP stock price target after earningsAnalysts retool C3.ai stock price target after earningsAnalysts reboot Dell stock price targets ahead of earnings
In Europe, the region-wide Stoxx 600 was marked 0.84% lower in Frankfurt, with energy stocks trading at a two-month low, while Britain’s FTSE 100 down 0.54% in London.
Overnight in Asia, Japan’s Nikkei 225 edged 0.22% lower in Tokyo while the region-wide MSCI ex-Japan benchmark fell 1.44% into the close of trading, weighed down by a big decline in India markets amid the likely narrower-than-expected win for Prime Minister Narendra Modi.
Related: Veteran fund manager picks favorite stocks for 2024
