Wall Street is gearing up for a firmer start on Tuesday after stocks pulled back sharply in the previous session. The index futures firmed up amid a pullback in the 10-year Treasury note yield and dovish comments issued by a Federal Reserve official. Speaking at a European Central Bank event in Frankfurt, Germany, Fed Governor Adriana Kugler said if the progress seen on the inflation front continues, she would support additional cuts in the Fed fund rate. She also reiterated the recent Fed rhetoric that the central bank’s attention has shifted away from inflation toward maximum employment.
With China refraining from issuing details on further stimulus, sentiment soured in Asia. This also weighed down on oil prices. Traders may focus on the bond yields and a Fed speech scheduled during market hours. The offsetting impact could come from the negative reaction to PepsiCo, Inc.’s (NASDAQ:PEP) earnings which could intensify anxiety concerning the third-quarter reporting season. Some key first-tier data due for the remainder of the week could introduce some caution.
Futures
Performance (+/-)
Nasdaq 100
+0.37%
S&P 500
+0.46%
Dow
+0.13%
R2K
+0.01%
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.30% to $569.53 and the Invesco QQQ ETF (NASDAQ:QQQ) moved 0.31% higher to $483.59, according to Benzinga Pro data.
Cues From Last Session:
Stocks fell sharply on Monday, reversing course from the jobs data-induced upside seen last Friday. The major indices opened lower and moved roughly sideways below the unchanged line before they fell sharply in the afternoon, as traders weighed in on the rise in bond yields, the imminent reporting season., some negative tech tidings and a couple of Fed speeches. The indices consolidated around the lower levels in the last hour of trading before closing notably lower.
Hurricane Milton, the newest one of the 2024 hurricane season, also exerted downward pressure on insurance ...
