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Stock Market News: Dow, S&P 500 Set to Open Down
Nasdaq futures are also falling in premarket trading Tuesday.
Last Updated:
June 4, 2024 at 8:11 AM EDT
Updated 43 min ago
Stock Futures Drop Amid Signs of U.S. Economic Weakness
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U.S. stock futures were falling early Tuesday after finishing higher on Monday. Traders are focusing on signs of weaker economic growth and whether the Federal Reserve will be able to lower interest rates this year.
Dow Jones Industrial Average futures fell 107 points, or 0.3%, after declining 0.3% on Monday. S&P 500 futures were down 0.3% after notching a small gain, similar to futures for the technology-heavy Nasdaq 100, which also slipped 0.3%.
The market was lifted on Monday by a new chip release from Nvidia, which has been a major driver of artificial intelligence excitement for stocks this year. But those gains covered up weakness in other shares. A survey of U.S. manufacturing added to signs of weaker growth on Monday, while hopes for lower interest rates from the Fed were pushed further out.
“Overall, U.S. stocks barely held their head above water” on Monday, said Derren Nathan, head of equity research atHargreaves Lansdown. Lower oil prices and “weaker economic data may provide some comfort for those on rate-setting committees hoping for an earlier cut to borrowing costs.”
The Institute for Supply Management’s Purchasing Managers Index, or PMI, came in weaker than expected and showed contraction for the month of May. Traders increased bets on a rate cut in September to more than 50% after the news.