U.S. stock futures are falling early Tuesday after the S&P and Nasdaq both finished at record highs in the previous session, while the Dow also gained.
Traders are now focused on Wednesday and looking for more clues about the U.S. economic outlook. Inflation data will be released in the morning and the Federal Reserve announces an interest-rate decision in the afternoon. No one is expecting a move on rates now, but investors are still hoping for one or two cuts later this year if the Fed becomes confident that price gains are under control.
Traders are more or less evenly split on whether the Fed will deliver a cut in September, according to the CME FedWatch tool. Most still see one or two quarter-point moves by the end of the year.
The yield on the benchmark 10-year Treasury note stood at 4.451% early Tuesday, down slightly from yesterday. The two-year yield was at 4.878%.
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Dean Seal, Dow Jones Newswires
Apple’s unveiling of its planned generative AI offerings reminds D.A. Davidson analyst Gil Luria of another watershed moment from the tech giant’s past: when it shifted the world of digital music from Napster, a standalone app with questionable regulatory standing, to iTunes, an experience integrated into existing consumer applications.
The AI bid is turning Luria bullish on the stock, which has trailed tech peers so far this year. The analyst believes the AI features that will be integrated into Apple’s existing ecosystem will drive broader adoption of AI and give Siri the juice to execute tasks on behalf of users. Luria upgrades the stock to a buy rating.
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U.S. stock futures were slipping early Tuesday after closing at new records to start the week.
Dow Jones Industrial Average futures were down 160 points, or 0.4%. Contracts tied to the S&P 500 were off 0.3% as were those on the Nasdaq Composite. The S&P and Nasdaq both finished at record highs on Monday, while the Dow also gained.
Traders are now focused on Wednesday for more clues about the U.S. economic outlook. Inflation data will be released in the morning and the Federal Reserve announces an interest-rate decision in the afternoon. No one is expecting a move on rates now, but investors are still hoping for one or two cuts later this year if the Fed becomes confident that price gains are under control.
“Markets are all but certain that there won’t be any rate cut this week, and real questions are being asked about whether the Fed will act before the year’s up,” said Matt Britzman, an equity analyst at Hargreaves Lansdown.
Traders are more or less evenly split on whether the Fed will deliver a cut in September, according to the CME FedWatch tool. Most still see one or two quarter-point moves by the end of the year.
The yield on the benchmark 10-year Treasury note stood at 4.451% early Tuesday, down slightly from yesterday. The two year yield was at 4.878%.
