New York City – US stock futures showed a mixed start on Tuesday as the new quarter began, with investors awaiting fresh data on jobs and manufacturing to gain insight into potential interest-rate cuts. Dow Jones Industrial Average futures slipped 0.2%, while S&P 500 futures remained just below the flatline, following a recent record close. Similarly, contracts for the Nasdaq 100 were relatively unchanged.
As October and the fourth quarter kicked off, the market was digesting remarks from Federal Reserve Chair Jerome Powell. Powell indicated that policymakers were not rushing to lower rates, despite efforts to maintain a strong economy. This led traders to scale back expectations of a 0.5% cut. The focus now shifted to the upcoming report on job openings in August, which could influence market expectations given the Fed’s emphasis on the labor market. Additionally, updates on manufacturing activity from ISM and S&P Global were anticipated to provide further clues on the pace of economic slowdown in the US.
These data releases laid the groundwork for the much-awaited September jobs report set to be released later in the week. Investors were keen to see confirmation that the US economy was cooling rather than deteriorating. However, concerns arose as dockworkers initiated a strike on the East and Gulf coasts, potentially disrupting half of the country’s ocean shipping. The repercussions of a prolonged halt in shipping could have significant economic implications, including inflation risks and potential job losses.
While investors closely monitored geopolitical developments in the Middle East as Israeli troops entered Lebanon, a notable report from Barclays analyst Tim Long raised concerns about Apple. Long highlighted weak demand for the iPhone 16, citing a possible reduction in units for the December quarter based on recent supply chain checks. Long reiterated an underweight rating on Apple, reflecting concerns about softer-than-expected demand for the latest iPhone model.
The financial markets remained on edge as they navigated through a mix of economic indicators, geopolitical tensions, and company-specific developments. The coming days promised increased volatility as investors awaited further clarity on the direction of interest rates and the overall health of the global economy.