Major U.S. stock indexes are poised to open lower Tuesday, as September trading gets underway following a volatile month that ended on a high note.
Futures tied to the Dow Jones Industrial Average and S&P 500 were each down 0.5%, while those linked to the Nasdaq 100 were down 0.6%. The major indexes closed higher on Friday ahead of the three-day Labor Day weekend.
U.S. stocks had a strong finish to August, after falling sharply early in the month, as investor fears about the health of the economy subsided and expectations grew that the Federal Reserve will start cutting interest rates soon. The S&P 500 gained 1.8% in August and has posted monthly gains in all but one month this year.
The economic data and earnings release calendars are light on Monday. The most highly anticipated event of the week comes Friday, with the release of the August jobs report, which investors will be watching closely after a weaker-than-expected July report sent markets reeling in early August.
Market participants are watching economic indicators closely to get a sense of how aggressive the Fed might be in cutting its benchmark interest rate. Fed Chair Jerome Powell has signaled that rate cuts are coming, possibly as soon as the September meeting of the central bank’s policy committee, but has said that incoming data will drive the decisions on the pace and depth of the easing.
Among stocks on the move in premarket trading Tuesday, AI chipmaker Nvidia (NVDA) was down 2%. Other mega-cap tech stocks, including Microsoft (MSFT), Apple (AAPL), Meta Platforms (META), Amazon (AMZN) and Alphabet (GOOGL), were also losing ground ahead of the bell.
The yield on 10-year Treasurys, which is closely correlated to expectations around interest rates, was up slightly to 3.92%, near its highest point in more than two weeks. Gold futures were down slightly at around $2,520, while bitcoin was little changed at around $59,000.
Stocks to Watch in September
1 hr 18 min ago
Stocks rebounded in the final weeks of August, putting the S&P 500 just below its all-time high heading into September. But a lot has changed under the surface since July.
The Magnificent Seven stocks that once dominated the market have yet to fully recover from recent sell-offs. The year’s most popular trade—a long bet on big tech stocks—has faltered as investors have warmed up to dividend payers and other rate-sensitive stocks in anticipation of interest rate cuts by the Federal Reserve.
With the Fed all but guaranteed to lower rates at its September meeting, the big unknowns hanging over markets in September are: How much will rate cuts be? And can the AI trade regain its footing?
Read here about five stocks, including Nvidia (NVDA) and Apple (AAPL), that could either lead market trends or see big price moves in September.
Major Indexes Poised to Open Lower Tuesday
1 hr 56 min ago
Futures tied to the Dow Jones Industrial Average were down 0.5%.
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S&P 500 futures were also down 0.5%.
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Nasdaq 100 futures were off 0.7%.
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