Dow Futures Decline As Investors Exercise Caution Amid Falling Fed Rate Cut Hopes: NVDA, HOOD, MSFT, HD Among Stocks To Watch

While Dow Jones futures were down by 0.33% at the time of writing, the S&P 500 futures fell 0.27%.

• According to data from the CME FedWatch tool, the probability of a 25 basis point rate cut in December is down to 44.4% now, from 66.9% a week ago.
• Schwab strategist Alex Coffey also noted that traders are taking some risk off the table ahead of Nvidia’s earnings.
• Asian markets ended Tuesday’s trading session on a negative note, with the KOSPI declining the most at 3.43%.

U.S. stocks appear set for a negative opening on Tuesday as investors exercise caution amid declining probabilities of an interest rate cut at the Federal Open Market Committee’s (FOMC) upcoming December meeting.

According to data from the CME FedWatch tool, the probability of a 25-basis-point rate cut in December has decreased to 44.4%, down from 66.9% a week ago and 93.7% a month ago.

Wall Street is also maintaining a cautious approach ahead of AI bellwether Nvidia Corp.’s (NVDA) earnings slated for Wednesday. “Traders appear to be taking some risk off the table ahead of the much-anticipated Nvidia earnings and jobs data releases later this week,” said Alex Coffey, senior trading and derivatives strategist at Schwab.

Futures Decline

While Dow Jones futures were down by 0.33% at the time of writing, the S&P 500 futures fell 0.27%, while the tech-heavy Nasdaq 100’s futures declined 0.29%. Futures of the Russell 2000 index were down by 0.38%.

Meanwhile, the SPDR S&P 500 ETF (SPY) was down by 0.29% at the time of writing, Invesco QQQ Trust (QQQ) declined 0.36% on Tuesday morning, and SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.37%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

Asian Markets In Red

Asian markets ended Tuesday’s trading session on a negative note, with the KOSPI declining the most at 3.43%, followed by the Nikkei 225 at 3.01%, and the TWSE Capitalization Weighted Stock index at 2.58%.

The Hang Seng index fell 1.83%, while the Shanghai Composite declined 0.82%.

Stocks To Watch

• Nvidia Corp. (NVDA): Nvidia shares were down nearly 1% pre-market, continuing its decline from the previous session after Peter Thiel’s fund, Thiel Macro, offloaded its entire stake in the company during the third quarter (Q3), according to the fund’s 13F filing with the U.S. Securities and Exchange Commission (SEC).
• Robinhood Markets Inc. (HOOD), Coinbase Global Inc. (COIN): Robinhood and Coinbase shares were down nearly 1% pre-market after Bitcoin (BTC) fell below the $90,000 level for the first time in seven months, before recouping some of the losses.
• Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN): Microsoft and Amazon’s cloud computing services, Azure and Amazon Web Services, came under the European Union’s Digital Markets Act scanner, for potential curbs. Microsoft and Amazon’s shares were down more than 1% pre-market.
• The Home Depot Inc. (HD): Home Depot shares were down nearly 2% pre-market after the company reported mixed results in Q3. Home Depot reported earnings per share (EPS) of $3.74 on revenue of $41.4 billion, compared to Wall Street expectations of an EPS of $3.84 on revenue of $41.05 billion, according to Stocktwits data.
• Klarna Group Plc. (KLAR), Castor Maritime Inc. (CTRM), and Baidu Inc. (BIDU) are among the companies scheduled to report their latest quarterly earnings on Tuesday.

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