U.S. stock futures pointed to losses at the market open on Tuesday, as trading resumes after the Labor Day holiday, with September looking set to start on a typically gloomy note. Nvidia and Broadcom were slumping with chip stocks seemingly out of favor.
Dow Jones Industrial Average futures were down 208 points or 0.5%. S&P 500 futures were losing 0.5% and Nasdaq 100 futures were down 0.6%.
Heavyweight chip maker Nvidia was weighing on the tech-heavy Nasdaq, with shares down 2.0% in premarket trading. Fellow chip company Broadcom was down 1.2%, ahead of its own earnings report on Thursday, which will be closely watched to see if market enthusiasm for the AI trend is waning.
Investors will be gauging economic data releases in the shortened week ahead of the Federal Reserve’s next interest-rate decision on Sept. 18.
The big macroeconomic event of the week will be Friday’s U.S. job report. However, before then there will be eyes on ISM purchasing managers’ data for August on the manufacturing sector on Tuesday for more clues as to the depth of any economic slowdown.
“The slack in the manufacturing sector has been priced in for a while, and we’ll probably need to see a rather soft number to trigger recession alarms and drive the dollar materially lower. The consensus is looking at a modest improvement in August, from 46.8 to 47.5,” wrote ING analyst Francesco Pesole in a research note.
The yield on the benchmark 10-year Treasury note stood at 3.914% early on Tuesday, broadly flat from the previous week.