Futures edge up ahead of business activity data
U.S. stock index futures ticked higher on Tuesday after a steep selloff on Wall Street in the previous session on concerns about aggressive signals from the Federal Reserve on interest rate increases, with manufacturing and services data on tap.
The S&P flash composite Purchasing Managers’ Index (PMI) due at 9:45 a.m. ET, which would provide clues on the strength of the U.S. economy, will follow weak readings from Europe earlier in the day that compounded expectations of a recession in the region and pressured global markets.
Wall Street has closed sharply lower in the last two sessions as investors worried over a Fed gathering later this week in Jackson Hole, Wyoming, where the central bank chair Jerome Powell is expected to reinforce a strong commitment to stamp out inflation running at four-decades high.
After a rough start to the year, markets rallied since mid-June on hopes inflation has peaked but the summer rally snapped last week on renewed fears around an aggressive monetary policy tightening path by the Fed.
Traders remain split between a 50 basis point and a 75 basis point hike by the central bank at its meeting next month, though economists polled by Reuters expect a 50 basis-point hike.
U.S. Treasury yields retreated a little on Tuesday, a day after scaling past 3% for the first time since July 21, supporting battered megacap growth and technology stocks.
High-growth stocks such as Apple Inc and Amazon.com Inc added 0.3% each in trading before the bell, while most banks also edged higher.
At 06:47 a.m. ET, Dow e-minis were up 70 points, or 0.21%, S&P 500 e-minis were up 9.25 points, or 0.22%, and Nasdaq 100 e-minis were up 31.25 points, or 0.24%.
Pandemic favorite Zoom Video Communications Inc tumbled 11% after the company cut its annual profit and revenue forecasts.
Palo Alto Networks gained 8.5% after the cybersecurity firm posted upbeat quarterly results and announced a stock split plan.
U.S.-listed shares of Chinese e-commerce giant Pinduoduo rose 2.4% on plans to launch a cross-border e-commerce platform next month which will target the United States as its first market, a source with direct knowledge of the matter said.
JD.com Inc climbed 5.2% on beating Wall Street estimates for quarterly revenue as lockdowns in China to control the spread of the coronavirus boosted online shopping and the company’s “618” shopping event. (Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Sriraj Kalluvila)
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