Nasdaq Index, Dow Jones, S&P 500 News: Struggling as Uneven Start to June Continues

Wall Street Futures Dip Amid Uneven Market Start

Stock futures fell Tuesday as Wall Street sought stability after a mixed start to the month. Dow Jones Industrial Average futures dropped 148 points, or 0.3%, while S&P 500 and Nasdaq 100 futures declined 0.4% and 0.3%, respectively. This movement followed the Dow’s loss of over 115 points on Monday, contrasted by modest gains in the S&P 500 and Nasdaq Composite.

Weak Manufacturing Data Affects Sentiment

Weak manufacturing data dampened market sentiment. Investors are closely watching whether growth can sustain while the Federal Reserve holds off on cutting interest rates, waiting for inflation to decrease sufficiently. Bank of America’s head of U.S. equity and quantitative strategy, Savita Subramanian, expressed concerns about the indices. “The indices themselves are a little bit flawed right now,” she told CNBC’s “Squawk Box.” Subramanian highlighted that broader earnings across the S&P 500, beyond just the high-performing “Magnificent Seven,” were a positive sign.

Economic Growth and Investor Confidence

Gabriela Santos, JPMorgan Asset Management’s chief market strategist for the Americas, noted that the economy remains solid overall, despite some investor apprehension. “For us, this is really a story of moderation in the overall pace of growth,” she said on CNBC’s “Closing Bell.” She acknowledged that this shift could lead to more volatile periods but remained optimistic about the broader economic trajectory.

Key Economic Data and Reports

A busy week of economic data continues, with April’s job openings and factory order data set for release at 14:00 GMT on Tuesday. The week’s crucial report will be May’s payroll figures, expected on Friday. These reports will provide further insight into the health of the economy and influence market direction.

Pre-Market Movers

Several stocks were making notable moves in pre-market trading:

• Intel: Shares rose over 1% after announcing new artificial intelligence chips to compete with Nvidia and AMD.
• GameStop: The stock slipped 2%, following a 21% rally on Monday amid speculation about meme stock trader Keith Gill’s potential major position in the company.
• Bath & Body Works: Shares dropped 9% despite exceeding first-quarter earnings and revenue estimates, due to disappointing guidance for the current period.
• Alphabet: Shares fell 0.4% after CNBC reported that the company is cutting at least 100 jobs from its cloud unit, affecting sales, consulting, and other departments.

Market Forecast

Based on the current data and market sentiment, a bearish outlook seems appropriate for the near term. Continued weak manufacturing data and upcoming economic reports may add pressure on stocks. Traders should stay alert to volatility and be prepared for potential further declines as the market assesses economic growth and Federal Reserve actions.

Technical Analysis

E-mini S&P 500 Index futures are edging lower on Tuesday, but remain above 50-day moving average support at 5216.31. The move indicates the intermediate trend is up.

The short-term range is 5368.25 to 5205.50. This creates a pivot at 5286.75. Trader reaction to this level is likely to set the tone for the day. Shortly before the cash market opening, this indicator is pointing lower.