Futures drop as megacaps retreat ahead of key jobs data
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.31%, S&P 500 0.42%, Nasdaq 0.51%
July 2 (Reuters) -Wall Street's index futures dipped on Tuesday as megacap stocks pulled back after a strong session, while some caution crept in ahead of jobs opening data and a series of other crucial U.S. labor market reports due throughout the week for monetary policy cues.
Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O slipped in premarket trading after jumping 2%-3% in the previous day. Tesla TSLA.O shed 1% after Monday's 6% jump ahead of the EV maker's June-quarter deliveries, expected to fall for two straight quarters for the first time.
AI chip leader Nvidia NVDA.O also dropped 1.4%, with other semiconductor stocks such as Micron Technology MU.O, Marvell Technology MRVL.O and Arm Holdings ARM.O also slipping nearly 1%.
On the data front, the job openings and labor turnover survey, or JOLTS, is due after market open and is expected to show job openings fell to 7.910 million in May from 8.059 million in the previous month.
The data would be crucial in determining the state of the U.S. labor market, which remains somewhat resilient even against the backdrop of decades-high interest rates - a key determinant of economic health.
The other jobs data that are due throughout the week include ADP National Employment, weekly jobless claims and non-farm Payrolls. The other prints also scheduled for the week are factory orders and services PMI, coupled with minutes of the Federal Reserve's latest policy meeting.
With the equity market closed on Thursday on account of U.S. Independence Day, trading volumes are expected to be light throughout the week.
As recent data signals a renewed moderation in inflation and some signs of economic weakness, market participants are holding on to their bets around two interest rate cuts by this year-end, starting from September, as per LSEG's FedWatch data.
"We continue to observe that U.S. exceptionalism has somewhat softened. In particular, growing strains were seen on U.S. consumer while the tightness in the U.S. labor market has eased," said analysts at OCBC.
"Our house view continues to expect two cuts for 2024, with the first cut happening sometime in the third quarter."
Further, investors will also parse remarks from Fed Chair Jerome Powell in a policy panel before the European Central Bank forum on central banking.
At 5:31 a.m. ET, Dow e-minis 1YMcv1 were down 124 points, or 0.31%, S&P 500 e-minis EScv1 were down 23.25 points, or 0.42%, and Nasdaq 100 e-minis NQcv1 were down 102.25 points, or 0.51%.
Among other major premarket movers, Paramount Global PARA.O climbed 4.6% after billionaire Barry Diller's digital-media conglomerate IAC IAC.O is exploring a bid to take control of the media giant.
Atlassian TEAM.O rose 1.9% after Piper Sandler upgraded the enterprise software maker to "overweight" from "neutral", while CrowdStrike Holdings slipped 2.1% after the same brokerage downgraded the cybersecurity firm to "neutral" from "overweight".
Reporting by Ankika Biswas in Bengaluru; Editing by Maju Samuel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
