Tokyo, Japan – June 4, 2024 – U.S. stock futures pointed towards a lower open on Tuesday, reversing gains made on Monday. Investor sentiment appeared to be dampened by worries about slowing economic growth and the Federal Reserve’s monetary policy.
Dow Jones Industrial Average futures shed 206 points, translating to a 0.5% decline, following a 0.3% drop on Monday. S&P 500 futures were down 0.6%, mirroring a similar decline in Nasdaq 100 futures, which are heavily weighted towards technology stocks.
Monday’s market gains, fueled by excitement surrounding Nvidia’s new chip release, masked underlying weaknesses in other sectors. Adding to the negative sentiment was a survey by the Institute for Supply Management (ISM) revealing weaker-than-expected manufacturing activity in May, suggesting potential economic contraction.
Analysts noted that Monday’s muted market performance reflected these anxieties. Derren Nathan, head of equity research at Hargreaves Lansdown, observed that “U.S. stocks barely held their head above water.” He further suggested that lower oil prices and weaker economic data might incentivize the Fed to consider an interest rate cut sooner, with some traders now placing the probability of a September cut above 50%.
