U.S. stock futures edged lower at the start of a holiday-shortened week, with investors closely watching upcoming economic releases that could signal the future direction of U.S. interest rates. Swiss food giant Nestle dropped after its CEO abruptly departed, while gold surged to record highs amid expectations of rate cuts and trade uncertainties.
Futures Retreat
Futures on major U.S. indexes declined Tuesday as traders returned from the Labor Day break. By 03:37 ET, Dow futures fell 113 points (0.3%), S&P 500 futures dropped 15 points (0.2%), and Nasdaq 100 futures were down 65 points (0.3%).
Despite August being historically volatile, the S&P 500 gained 1.9% for the month, bringing year-to-date gains to around 10% and keeping the index close to all-time highs. The rise continues a rebound in equities since April, when concerns about broad U.S. tariffs caused a market sell-off.
Economic Data in Focus
Investors are awaiting a key batch of economic indicators, including Friday’s U.S. nonfarm payroll report. Analysts suggest that weaker-than-expected August job growth—following a soft July and downward revisions to prior months—could reinforce bets on a Federal Reserve rate cut at the September 16-17 policy meeting. Current projections expect around 74,000 new jobs, slightly above July’s 73,000.
Tuesday also brings the ISM manufacturing index for August, projected at 49.0, up from 48.0 in July but still signaling contraction as it remains below the 50-point expansion threshold.
Nestle CEO Departure
Shares of Nestle (LSE:0RR6) slid more than 3% after CEO Laurent Freixe was removed following a board investigation that found a violation of company policy related to an undisclosed romantic relationship with a subordinate.
Philipp Navratil, a long-serving executive who previously led Nestle’s Nespresso division, takes over immediately. The leadership change adds pressure on a company already navigating several years of muted growth and a prior CEO change, with Chair Paul Bulcke planning to step down in 2026.
Gold Surges to All-Time High
Gold hit record levels Tuesday as safe-haven demand rose amid expectations of lower U.S. rates and trade uncertainties. Spot gold jumped 0.8% to $3,508.54 per ounce, while December futures reached $3,578.20. By 03:27 ET, spot prices eased slightly to $3,482.28 per ounce.
Precious metals such as silver and platinum also posted gains, with silver near a 14-year peak and platinum close to an 11-year high. The dollar slid to a five-week low, boosting demand for non-yielding assets relative to government bonds. Legal uncertainty surrounding U.S. tariffs, after a court ruling deemed certain Trump-era measures illegal but allowed them to remain until mid-October, also contributed to market volatility.
Oil Prices Rise
Crude extended gains, with Brent November futures climbing 0.9% to $68.74 per barrel and WTI crude rising 1% to $65.24 per barrel. Traders weighed the risk of supply disruptions from Russia-Ukraine against increased output from OPEC+ nations. The recent intensification of airstrikes and potential sanctions on Russian oil have heightened concerns over supply, while rising OPEC+ production has added fears of oversupply. Market participants are watching the September 7 OPEC+ meeting for further direction on output policies.
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