Dow, Nasdaq Futures Dip Ahead Of Consumer Data: Strategist Says Fed Has 'Turned The Corner' But Asks If Powell Will 'Cut Fast Enough'

Among the economic catalysts for the day are the Conference Board’s consumer confidence reading for August, the Commerce Department’s durable goods orders report for July, and a duo of June house prices data.

U.S. stock futures were down marginally early Tuesday as investors await additional clarity on the interest rate outlook. Sentiment may also take a hit from fears concerning the Federal Reserve’s independence after President Donald Trump, in an unprecedented move, fired Federal Reserve Board Governor Lisa Cook.

Additionally, traders could opt to sit out artificial intelligence (AI) stalwart Nvidia’s (NVDA) quarterly results due Wednesday, after the market closes. Nvidia is currently the most valued global corporation with a market cap of $3.85 trillion, and its weighting in the broader S&P 500 gauge is about 7.5%.

As of 3:15 a.m. ET on Tuesday, the Dow and the S&P 500 futures fell 0.19% and 0.17%, respectively, the Nasdaq 100 futures moved down 0.23% and the Russell 2000 Index lost 0.29%.

Stocks showed nervousness on Monday after Friday’s rally, which was achieved on the back of Fed Chair Jerome Powell’s comments. Tech stocks held their ground for the better part of the session but lost momentum toward the close. The S&P 500, the Dow Jones Industrial Average, and the Russell 2000 Index languished below the unchanged line for much of the session before ending sharply lower.

Defensive sectors such as consumer staples, healthcare, utilities, and industrials were the worst hit.

The SPDR S&P 500 ETF (SPY), an exchange-traded fund (ETF) that tracks the S&P 500 Index, slipped 0.44%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the iShares Russell 2000 ETF (IWM) declined 0.78% and 0.96%, respectively.

The Invesco QQQ Trust (QQQ) fell a more modest 0.29%.

Among the economic catalysts for the day are the Conference Board’s consumer confidence reading for August, the Commerce Department’s durable goods orders report for July, and a duo of June house prices data (S&P Case-Shiller and Federal Housing Finance Agency).

Richmond Fed President Thomas Barkin is scheduled to speak at 8:30 a.m. ET.

Box (BOX), MongoDB (MDB), nCino (NCNO), Okta (OKTA) and PVH (PVH) are among the companies scheduled to announce their quarterly results on Tuesday.

WisdomTree Senior Economist Jeremy Siegel said in his weekly commentary published on Monday, ahead of Cook’s firing, that her potential ouster or replacement won’t materially alter policy. 

“Trump’s influence may loom large in public discourse, but operationally, the Fed has already turned the corner,” Siegel said, adding that “The more important question is whether Powell will cut fast enough to satisfy political demands.”

A negative August jobs report could accelerate the pace of cuts, he said.

Commenting on the equity market, Siegel said, “I still see 5–10% upside from here, particularly if earnings hold up, which they have so far.”

Crude oil futures have reversed course after a four-session advance that helped them to revisit the $65 mark. However, gold futures firmed up. The 10-year U.S. Treasury note yield surpassed the 4.3% level early Tuesday.

The dollar slipped against most major currencies after rebounding on Monday.

Major Asian markets retreated after Monday’s strong gains. 

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