US Stocks: Premarket Action on AT&T, Credo, and U.S. Steel to Drive Sentiment

How Are U.S. Markets Positioned Today?

U.S. stock futures signal a lower open on Tuesday, reflecting cautious sentiment following Monday’s record-setting performance in the S&P 500 and Nasdaq Composite. Investors remain focused on upcoming labor market data and Federal Reserve signals, which could influence year-end trading strategies.

At 14:32, the Dow Jones Industrial Average is trading 44805.16, up 23.16 or +0.05%. The S&P 500 Index is at 6046.56, down 0.59 or -0.01% and the Nasdaq is trading 19373.90, down 30.05 or -0.15%.

Which Sectors Are Leading or Lagging in the Market?

Monday’s trading session highlighted a mixed sectoral performance. Technology-driven gains propelled the Nasdaq Composite to a fresh high, while the S&P 500 also set a new closing record, bolstered by large-cap growth stocks. However, industrials and financials weighed on the Dow Jones Industrial Average, which fell over 100 points after briefly crossing the 45,000 mark during the session.

Key catalysts this week include labor market indicators like Tuesday’s October job openings report and Friday’s nonfarm payrolls data. These metrics are vital for assessing the Federal Reserve’s next policy steps, with CME’s FedWatch Tool suggesting a 73% chance of a rate cut at the December policy meeting. Traders are also eyeing Fed commentary from Governor Adriana Kugler and Chicago Fed President Austan Goolsbee for clues on sectoral impacts.

Which Stocks Are Making Headlines Today?

Premarket activity showcases notable moves in individual stocks driven by corporate and geopolitical developments. U.S. Steel plunged 7% after President-elect Donald Trump opposed its acquisition by Japan’s Nippon Steel, a deal already facing political challenges. Conversely, AT&T climbed nearly 4% following an upbeat forecast of over $18 billion in free cash flow by 2027, supported by its strategic plans for expanding fiber internet and 5G services.

Other movers include Credo Technology, surging 32% after robust earnings and strong forward guidance. Zscaler fell 7% after issuing a revenue forecast that matched expectations but disappointed investors anticipating more aggressive growth. Meanwhile, Super Micro Computer rose nearly 8%, building on Monday’s 29% gain after a special committee cleared its management of any financial misconduct concerns.

Where Is the Market Headed Next?

The market’s direction will depend on labor market data and the Federal Reserve’s signals this week. Continued strength in technology and growth stocks could support further gains, particularly for the S&P 500 and Nasdaq Composite. However, the mixed performance of industrials and financials raises questions about broader market participation. The short-term outlook is cautiously bullish, with sector-specific volatility likely to persist as traders react to data releases and policy developments.

More Information in our Economic Calendar.