Dow futures slipped about 300 points on Tuesday as investors pulled back ahead of key US economic reports this week, including the August jobs numbers.
Rising long-term Treasury yields and a recent court ruling on Trump-era tariffs added to the nervousness. August had been a good month for stocks, but September is often rough.
All eyes are now on the Fed and new data that could shift how investors are feeling.
5 things to know before Wall Street opens
1. A bunch of important economic data is coming out that could really move markets today. The ISM Manufacturing PMI is probably the biggest one as that will tell us whether factory activity is picking up or slowing down.
Construction spending numbers will give us a read on how the housing and infrastructure sectors are doing.
There is also the RCM/TIPP Economic Optimism Index, which tries to capture how consumers and businesses are feeling about the economy going forward.
These sentiment indicators can sometimes be just as important as the hard data because they influence spending and investment decisions.
2. Pre-market trading is showing investors are being pretty careful about their moves this morning. Tech and energy stocks are seeing the most action, which makes sense since those sectors have been the most unpredictable lately.
Several big-name companies are looking like they could swing either direction once regular trading starts, especially with some corporate updates expected later this week.
When investors know earnings or major announcements are coming, they tend to position themselves early, which can create some wild price swings.
3. The investors are going to be tuned to what Fed officials have to say today and throughout the week.
We have got multiple policymakers scheduled to speak, and investors are going to be hanging on every word they say about inflation, rates, and the economy.
Recent Fed comments have been all over the place, so people are trying to figure out what they’re actually planning to do at their next meeting.
Any hint about whether they’re leaning toward cutting rates or holding steady could really move markets.
4. Oil prices are still front and center as we come off the Labor Day weekend, with both Brent and WTI getting moved around by supply worries and all the geopolitical tensions happening around the world.
It’s one of those situations where every bit of news from oil-producing regions seems to move the needle.
But it’s not just oil that’s getting volatile. Metals, agricultural products, and pretty much every other commodity are bouncing around as investors worry about global trade getting more complicated.
5. The charts are telling an interesting story as we start September trading.
The S&P 500 is bumping up against a resistance level after doing pretty well in August, so technical analysts are watching to see if it can break through or if it’s going to hit a wall there.
The Nasdaq is still moving within its trend channel, which is good, but some of the momentum indicators are flashing overbought signals.
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