Stock futures showed minimal movement Tuesday morning following the Dow Jones Industrial Average’s fourth consecutive day of gains.
Futures for the Dow indicated a modest increase of 13 points, or 0.03%. S&P 500 futures saw a slight uptick of 0.01%, while Nasdaq 100 futures slipped marginally by 0.06%.
In Monday’s trading session, the Dow climbed nearly 0.5%, with the S&P 500 and the Nasdaq Composite also registering gains of 1% and approximately 1.2%, respectively. This marked the third consecutive session of gains for both indexes.
Investor optimism persisted from Friday, fueled by the release of nonfarm payrolls data for April, which fell short of expectations, resulting in a slight uptick in unemployment. This eased concerns of an overheating economy and bolstered hopes for potential Federal Reserve rate cuts.
Despite this optimism, conflicting economic indicators, such as an increase in the employment cost index, have left uncertainties regarding the inflation trajectory, noted Rob Haworth, senior investment strategist at U.S. Bank’s wealth management division.
Haworth emphasized the market’s quest for clarity on inflation dynamics, expressing a cautiously optimistic stance given ongoing economic strength. He stated, “Inflation remains persistent but not accelerating to a problematic level. So we believe there is scope to invest in risk assets at this juncture.”
Tuesday’s economic calendar remains relatively subdued, with only consumer credit data for March slated for release in the afternoon.
Attention on Wall Street will turn towards the quarterly earnings reports of Disney, UBS, BP, and Kenvue, a Johnson & Johnson spinoff, all scheduled to be unveiled on Tuesday morning.
