U.S. equity futures are pointing to a modestly positive start on Tuesday, suggesting Wall Street may attempt to recover after the previous session’s decline.
A sharp rebound in Bitcoin—up more than 2% after Monday’s steep drop—is helping support risk sentiment, lifting interest in growth- and tech-related names. Pre-market strength is particularly evident in Oracle (NYSE:ORCL), Nvidia (NASDAQ:NVDA), and Broadcom (NASDAQ:AVGO), all of which are trading higher ahead of the opening bell.
Still, broader trading could remain cautious as investors await several key U.S. economic releases due over the next few days.
The November employment report from payroll provider ADP arrives Wednesday, with economists forecasting a mild increase of 10,000 private-sector jobs. This follows a gain of 42,000 in October and comes just ahead of next week’s Federal Reserve policy meeting.
Market expectations for a rate cut continue to rise. According to the CME FedWatch Tool, traders now assign an 87.4% probability that the Fed will lower rates by 25 basis points—an increase from roughly 63% one month ago.
Additional data on the services sector, household income and spending, and consumer sentiment are also set to shape market expectations heading into mid-December.
On Monday, stocks initially tried to stabilize after an early slump but lost traction again in the afternoon. All three major indices ended the day sharply lower:
- Dow Jones Industrial Average: -427.09 points (-0.9%) at 47,289.33
- Nasdaq Composite: -89.76 points (-0.4%) at 23,275.92
- S&P 500: -36.46 points (-0.5%) at 6,812.63
The pullback followed a strong performance last week, when equities posted a five-day winning streak and recouped much of November’s earlier losses. A wave of profit-taking appeared to weigh on Monday’s action.
Investors have recently turned more optimistic about the interest-rate outlook after dovish remarks from several Federal Reserve officials, though upcoming data may influence how policymakers approach next week’s meeting.
Economic signals on Monday were mixed. The Institute for Supply Management reported a small but unexpected decline in its manufacturing PMI, falling to 48.2 from 48.7 in October. Economists had anticipated a slight rise to 49.0. Readings below 50 indicate contraction.
Sector moves were uneven. Utility stocks dropped sharply, pushing the Dow Jones Utility Average down 2.3% to its weakest close in two months. Biotechnology names also sank, with the NYSE Arca Biotechnology Index losing 2.1%. Networking, healthcare, and hardware stocks followed suit, while energy shares outperformed thanks to a strong rally in crude oil prices.