After ending last Friday’s trading mostly lower, stocks may see further downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.3 percent.
Ongoing anxiety about the outlook for interest rates may continue to weigh on the markets following last week’s hotter-than-expectation inflation data.
CME Group’s FedWatch Tool is indicating just an 8.5 percent chance the Federal Reserve will lower rates by a quarter point in March, while the chances of a quarter point rate cut in early May have fallen to 35.8 percent.
The Fed may provide additional insight into the outlook for interest rates with the release of the minutes of its latest monetary policy meeting on Wednesday.
The downward momentum on Wall Street also comes amid a notable decline by shares of Home Depot (HD), with the home improvement retailer slumping by 2.6 percent in pre-market trading.
The drop by Home Depot comes after the company reported better than expected fourth quarter results but provided disappointing guidance.
Meanwhile, shares of Walmart (WMT) are surging by 5.0 percent in pre-market trading after the retail giant reported fourth quarter results that exceeded estimates and announced a deal to acquire TV maker Vizio (VZIO) for $2.3 billion.
Shortly after the start of trading, the Conference Board is scheduled to release its report on leading economic indicators in the month of January. The leading economic index is expected to decrease by 0.3 percent in January after edging down by 0.1 percent in December.
U.S. stocks settled lower on Friday as robust producer price inflation data raised concerns the Federal Reserve may not consider lowering interest rate anytime soon.
The major averages all ended weak, with the downside of the tech-laden Nasdaq more pronounced. The Dow, which briefly emerged into positive territory around mid afternoon, ended with a loss of 145.13 points or 0.4 percent at 38,627.99.
The S&P 500 ended down 21.16 points or 0.5 percent at 5,005.57, while the Nasdaq settled at 15,775.65, losing 130.52 points or 0.8 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index fell by 0.3 percent, while China’s Shanghai Composite Index rose by 0.4 percent.
The major European markets have also turned mixed on the day. While the German DAX Index is down by 0.2 percent, the U.K.’s FTSE 100 Index is up by 0.1 percent and the French CAC 40 Index is up by 0.3 percent.
In commodities trading, crude oil futures are edging down $0.08 to $79.11 a barrel after jumping $1.16 to $79.19 a barrel last Friday. Meanwhile, after rising $9.20 to $2,024.10 an ounce in the previous session, gold futures are climbing $15.50 to $2,039.60 an ounce.
On the currency front, the U.S. dollar is trading at 150.07 yen versus the 150.13 yen it fetched on Monday. Against the euro, the dollar is trading at $1.0809 compared to yesterday’s $1.0779.
Business News
U.S. Stocks May See Further Downside In Early Trading
2024-02-20 13:53:10
