(Reuters) – U.S. stock index futures were lower on Tuesday as investors looked forward to a number of economic data this week and several key events, including an appearance by Federal Reserve Chairman Jerome Powell. It fell.
Investors focused on February U.S. services sector data and January factory orders data due at 10 a.m. ET, which could provide further insight into the health of the U.S. economy.
The benchmark S&P 500 index hit a new intraday high on Monday, after investors turned their attention to Chairman Powell's testimony to Congress on Wednesday and Thursday that could provide further clues about the direction of the Fed's monetary policy. , closed slightly lower.
Ipek Ozkardeskaya said: “In this testimony, Powell will likely ask for more patience on the timing of the first rate cut. He will probably say that inflation is on the right track, but he doesn't want to let his guard down too soon.” Stated. , Senior Market Analyst at Swissquote Bank.
According to CME Group's FedWatch tool, traders see a 65.5% chance that the first rate cut of the year will take place in June.
Atlanta Fed President Rafael Bostic said in remarks Monday that there is no immediate pressure on the Fed to lower interest rates given the “strong” economy and job market, and that interest rates remain low for an extended period of time. There were growing concerns that prices would rise.
Investors will be watching for speeches from other Fed policymakers, including Michael Barr, vice chair for oversight, who is scheduled to speak later in the day.
As of 4:40 a.m. ET, the Dow e-mini was down 54 points, or 0.14%, the S&P 500 e-mini was down 15.25 points, or 0.3%, and the Nasdaq 100 e-mini was down 116.25 points, or 0.64. %) fell.
Apple fell 1.6% in pre-market trading after a research report found iPhone sales in China fell 24% year-on-year in the first six weeks of 2024 as it faces increased competition from domestic rivals such as Huawei. .
Other large-cap growth and tech stocks also fell, with electric car maker Tesla and AI darling Nvidia down 2.1% and 0.9%, respectively.
Advanced Micro Devices fell 2.8% after the company reportedly hit a roadblock with the U.S. government in its efforts to sell artificial intelligence chips customized for the Chinese market.
MicroStrategy fell 8.6% after the Bitcoin developer announced a private placement of $600 million in convertible debt, with the proceeds to be used to buy Bitcoin.
Other major crypto companies such as Riot Platforms and Marathon Digital also fell 5.6% and 7.6%, respectively, as Bitcoin fell.
(Reporting by Bhansali Mayur Kamdar in Bengaluru; Editing by Maju Samuel)