U.S. Stock Futures Dip as Investors Assess Fed Chair’s Remarks and Await Economic Data

U.S. stock futures saw a mixed start on Tuesday as investors digested recent comments from Federal Reserve Chair Jerome Powell and braced for a busy week of key economic data releases.

Market Snapshot:

• Dow Futures: Down 145 points (-0.3%)
• S&P 500 Futures: Down 6 points (-0.1%)
• Nasdaq 100 Futures: Up 20 points (+0.1%)

The Dow Jones Industrial Average and S&P 500 hit record highs on Monday, benefiting from the Fed’s decision to cut interest rates by 50 basis points earlier this month, which contributed to a strong performance in September, historically a weak month for stocks. Notably, the S&P 500 has gained over 20% this year, a milestone not reached through the first nine months since 1997.

Fed’s Rate Cut Outlook:
Chair Jerome Powell signaled a cautious approach, saying the Federal Reserve does not feel “in a hurry to cut rates quickly,” suggesting the process will “play out over time.” This prompted a shift in expectations for a significant rate cut in the near term. Goldman Sachs strategists align with Powell’s remarks, anticipating 25 basis point cuts in both November and December.

Upcoming Economic Data:
Investors are eyeing several important data releases this week:

• JOLTS Report (Job Openings and Labor Turnover Survey): Expected to indicate 7.64 million job openings in August.
• ISM Manufacturing and Services PMIs: September readings will offer insights into U.S. economic momentum.
• October Nonfarm Payrolls Report (Friday): Economists forecast an addition of 144,000 jobs, which will be closely watched for indications of labor market strength.

Corporate News:

• CVS Health (NYSE:CVS): Shares rose over 2% in premarket trading following reports that the company is considering options, including potentially breaking up its retail and insurance divisions. Discussions with financial advisors have been ongoing, as per sources cited by Reuters.

Investors remain attentive to how these developments and data releases will influence the Fed’s monetary policy trajectory and the broader market’s direction.