Futures Pointing To Modestly Lower Open On Wall Street

Following the mixed performance seen in the previous session, stocks may move to the downside in early trading on Tuesday. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.2 percent.

Ongoing concerns about the U.S. debt ceiling and a potential default may weigh on Wall Street following a meeting between President Joe Biden and House Speaker Kevin McCarthy, R-Calif., on Monday.

A statement from Biden described the meeting as “productive” and said he “reiterated once again that default is off the table.”

“While there are areas of disagreement, the Speaker and I, and his lead negotiators Chairman McHenry and Congressman Graves, and our staffs will continue to discuss the path forward,” Biden said.

Trading activity may remain subdued, however, as traders await more concrete developments regarding raising the debt ceiling.

Later this week, the Commerce Department’s report on personal income and spending is likely to be in focus, as it includes a reading on inflation said to be preferred by the Federal Reserve.

The minutes of the Fed’s latest monetary policy meeting are also likely to attract attention, as traders look for additional clues on the outlook for interest rates.

Not long after the start of trading, the Commerce Department is scheduled to release its report on new home sales in the month of April. Economists expect new home sales to decrease to an annual rate of 670,000 in April from a rate of 683,000 in March.

U.S. stocks turned in a mixed performance on Monday with technology shares outperforming the broader market. Investors largely refrained from making significant moves as they awaited updates on debt ceiling negotiations.

The Dow slipped after a slightly positive start but stayed weak throughout the rest of the session and ended with a loss of 140.05 points or 0.4 percent at 33.286.58.

The S&P 500 settled at 4,192.63, up 0.65 points or less than a tenth of a percent, while the tech-heavy Nasdaq climbed 62.88 points or 0.5 percent to 12,720.78.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index fell by 0.4 percent, while China’s Shanghai Composite Index plunged by 1.5 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is up by 0.4 percent, the German DAX Index is down by 0.3 percent and the French CAC 40 Index is down by 0.9 percent.

In commodities trading, crude oil futures are jumping $1.02 to $73.07 a barrel after rising $0.36 to $72.05 a barrel on Monday. Meanwhile, after slipping $4.40 to $1,977.20 in the previous session, gold futures are falling $13.80 to $1,963.40 an ounce.

On the currency front, the U.S. dollar is trading at 138.68 yen compared to the 138.60 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0764 compared to yesterday’s $1.0813.

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