U.S. stock futures slipped early Tuesday as investors weighed the market’s record-setting performance against ongoing economic uncertainties.
Why it matters: The modest declines come after a stunning second quarter that saw the major indexes rebound from steep losses and reach new all-time highs, despite lingering concerns about trade tensions and the global economic outlook.
The details:
- Futures tied to the Dow Jones Industrial Average fell 60 points, or 0.1%, while S&P 500 futures declined 0.3% and Nasdaq futures slipped 0.1%.
- On Monday, the S&P 500 and Nasdaq Composite closed at fresh record highs, gaining 0.5% each, while the Dow climbed 275.50 points, or 0.6%.
- The S&P 500 ended the second quarter with a 10.6% gain, and the Nasdaq surged nearly 18% in the period, marking an impressive comeback from April’s steep losses.
- Traders are awaiting key economic data, including the S&P Global Purchasing Managers’ Index, ISM manufacturing report, and Job Openings and Labor Turnover Survey (JOLTS).
Despite the uncertain outlook, some analysts remain optimistic about the market’s potential for further gains.
“We think this is going to be a broader recovery,” said Mike Wilson, chief U.S. equity strategist and chief investment officer at Morgan Stanley. “I think with the Fed cutting rates in the second half of this year or next year, we can see a rolling recovery because there’s quite a bit of pent-up demand, particularly in those interest rate-sensitive parts of the market.”
In other markets:
- European stocks struggled to gain momentum, with the pan-European STOXX 600 trading 0.1% higher and most sectors in the green.
- Asia-Pacific markets were mixed, with Japan’s Nikkei 225 falling 1.24% and South Korea’s KOSPI rising 0.58%.
- Goldman Sachs moved up its Federal Reserve rate-cut outlook to September, now forecasting three 25 basis point cuts in 2025 and two more in 2026.
What’s next: Investors will closely monitor upcoming economic indicators and corporate earnings to gauge the market’s direction in the weeks ahead, as well as any developments in U.S. trade policies and global economic conditions.
Recent from X
https://x.com/ETNOWlive/status/1939896047406370843
https://x.com/ETNOWlive/status/1939869541829595501
https://x.com/amacker/status/1939807511441547725
