U.S. index futures are mostly steady in pre-market trading on Tuesday, following a record Dow Jones closing for the 20th time this year on the previous day.
At 5:36 AM, Dow Jones futures (DOWI:DJI) rose 33 points, or 0.08%. S&P 500 futures gained 0.02%, and Nasdaq-100 futures increased by 0.01%. The 10-year Treasury yield stood at 4.176%.
In the commodities market, oil prices fell due to an economic slowdown in China, raising doubts about demand despite the growing possibility of the Fed starting to cut rates as early as September. West Texas Intermediate crude for August dropped 0.84% to $81.22 per barrel. Brent crude for September fell 0.75% to around $84.21 per barrel.
On the U.S. economic agenda for Tuesday, the Department of Labor will publish import and export prices for June at 8:30 AM. Simultaneously, retail sales for the same month will be revealed.
Asia-Pacific markets showed mixed performance on Tuesday. Japan’s Nikkei 225 and India’s Nifty 50 reached record highs. The Nikkei 225 rose 0.2% while the Topix gained 0.34%. The Nifty 50 climbed 0.20%. Hong Kong’s Hang Seng fell 1.52%, impacted by the consumer sector. South Korea’s Kospi increased by 0.18%, while the Kosdaq dropped 1.56%. China’s CSI 300 rose 0.63%, and the Shanghai Composite edged up 0.08%. Australia’s S&P/ASX 200 declined by 0.23% after hitting a historic high.
With weak Chinese GDP, Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM) revised their growth forecasts downward. Additionally, investors are closely watching China’s Third Plenary Session, a meeting addressing local government debt and the development of the manufacturing sector. Among individual stocks, Singapore’s Temasek (TG:A2SANF) plans to invest up to $10 billion in India, focusing on sectors like financial services and healthcare, while remaining cautious about China. Insurer Ping An (USOTC:PIAIF) saw its shares plummet after canceling $102.6 million in A-shares.
European markets are trading lower, reflecting concerns over economic and political conditions in the region, with declines across all sectors. There are no major data releases in Europe on Tuesday. Among individual stocks, notable decliners included Hugo Boss (TG:BOSS), down more than 8% after the company cut its sales forecast due to macroeconomic challenges. In contrast, Ocado (LSE:OCDO) is up 15% after reporting a smaller half-year loss and raising its full-year expectations. Investors are awaiting the latest quarterly results from Swedbank (LSE:81BO).
On Monday, U.S. stocks rose, with the Dow Jones and S&P 500 hitting new records. The Dow gained 210.82 points, or 0.53%, to 40,211.72. The S&P 500 added 15.87 points, or 0.28%, closing at 5,631.22. The Nasdaq rose 74.12 points, or 0.4%, to 18,472.57. Optimism about Federal Reserve rate cuts and the prospects of Donald Trump’s victory in the upcoming elections boosted the market.
The New York Federal Reserve Bank report showed regional manufacturing activity contracted further in July, with the index dropping to -6.6. Additionally, Fed Chairman Jerome Powell stated that recent data reinforces confidence that inflation is approaching the bank’s 2% target, which could lead to rate cuts. He emphasized that the last three inflation readings were crucial for this outlook but avoided predicting the timing of rate reductions. Powell also mentioned a shift in focus, balancing concerns about the labor market and inflation.
On Monday, Trump chose JD Vance as vice president, highlighting the importance of the role after a disastrous debate by Biden. Vance attributed an assassination attempt on Trump to President Joe Biden’s campaign rhetoric.
In the quarterly earnings front, before the market opens, Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), Charles Schwab (NYSE:SCHW), State Street (NYSE:STT), PNC Financial (NYSE:PNC), Mercantile Bank Corporation (NASDAQ:MBWM), UnitedHealth Group (NYSE:UNH), Progressive (NYSE:PGR), and Angiodynamics (NASDAQ:ANGO), among others, will report.
After the market closes, results from Interactive Brokers (NASDAQ:IBKR), J.B. Hunt (NASDAQ:JBHT), AEHR Test Systems (NASDAQ:AEHR), Hancock Whitney (NASDAQ:HWC), Fulton Financial (NASDAQ:FULT), Omnicom Group (NYSE:OMC), Pinnacle Financial Partners (NASDAQ:PNFP), Equity Bancshares (NYSE:EQBK), and Great Southern Bank (NASDAQ:GSBC), among others, will be anticipated.