Dow Jones futures ease as market mood remains cautious
Dow Jones futures inch lower 0.02%, trading above 50,850 during the European hours on Tuesday, ahead of the US regular opening. However, S&P 500 futures gain 0.21% to near 7,430 and Nasdaq 100 futures rise 0.51%, trading near 29,600 at the time of writing.
US stock futures are trading mixed following a divergent overnight session on Wall Street, where the Dow Jones Index slipped 0.16% while a tech-driven rebound propelled the S&P 500 up 0.3% and the Nasdaq higher by 0.9%. This rally was largely spearheaded by chipmakers, with Intel (+11.2%), Marvell Technology (+9.6%), and Nvidia (+1.7%) all posting strong gains.
However, broader market sentiment remains cautious due to lingering geopolitical uncertainty in the Middle East. Although Iran’s military confirmed it has stopped strikes against Israel, Israeli Prime Minister Benjamin Netanyahu cautioned that the war against Iran and Hezbollah "has not yet ended." Compounding this tension, Iran’s central military command issued a stern warning that any continued Israeli aggression, particularly in southern Lebanon, would trigger "much harsher and more crushing actions."
This ongoing friction, paired with recent robust US jobs data, has reignited inflation fears and shifted US Federal Reserve (Fed) policy expectations. According to the CME FedWatch tool, traders have spiked the probability of a December quarter-point rate hike to 43%, up from 14% just a month ago, leaving investors bracing for Wednesday's Consumer Price Index (CPI) and Thursday's Producer Price Index (PPI) data to gauge the Fed's next move.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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