|
Investors will closely monitor the Job Openings and Labor
Turnover Survey (JOLTS), due at 10 a.m. ET, while a slew of
other data including the ADP National Employment numbers and the
more comprehensive non-farms payrolls will also be on their
radar later this week.
The S&P 500 ended flat on Monday with rate-sensitive utilities
falling sharply on uncertainty over the Federal Reserve's
monetary policy path, with the 10-year Treasury yield hitting
16-year highs.
"U.S. equities begin the fourth quarter as the tug-of-war
between bull and bear camps remains," U.S. Bank Asset Management
analysts wrote in a note.
"Persistent inflation, elevated interest rates and uncertainty
over the pace of earnings growth in 2023 and 2024 remain
headwinds to advancing equity prices."
At 5:30 a.m. ET, Dow e-minis were up 28 points, or 0.08%, S&P
500 e-minis were up 4.5 points, or 0.1%, and Nasdaq 100 e-minis
were up 3.25 points, or 0.02%.
Fed Chair Jerome Powell said on Monday the central bank was
striving to foster a sustained, strong labor market, and called
for price stability.
Fed officials reiterated the need to keep interest rates
restrictive for "some time" with indications of another likely
hike this year.
Traders have priced in a 26% chance for a rate hike in November,
while their odds for an increase in rates in December stand at
45%, according to the CME Group's FedWatch Tool.
After a stellar performance by megacaps in the first half of
2023 led by optimism over artificial intelligence, some
investors believe these stocks could lose momentum as yields
rise.
Megacap growth stocks were largely mixed in Tuesday's premarket
trading, with Apple, Tesla and Amazon.com slipping between 0.1%
and 0.6%.
Supporting sentiment, oil prices extended their decline in early
trade after falling to a three-week low on Monday due to
strength in the dollar, rising bond yields and mixed supply
signals.
Airbnb fell 1.8% after a report said Keybanc had downgraded the
vacation lodging platform's stock to "sector weight".
(Reporting by Ankika Biswas in Bengaluru; Editing by Vinay
Dwivedi)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
