U.S. stock futures pointed lower ahead of a shortened holiday week, with investor attention focused on key economic indicators that could influence the path of U.S. interest rates. Meanwhile, Swiss food giant Nestle saw its shares fall after the sudden exit of its CEO, and gold surged to record levels amid expectations of lower U.S. rates and trade-related uncertainties.
Futures Drop
Tuesday saw U.S. futures decline as traders returned from the Labor Day holiday. By 03:37 ET, Dow futures were down 113 points (0.3%), S&P 500 futures lost 15 points (0.2%), and Nasdaq 100 futures fell 65 points (0.3%).
Although August is traditionally a challenging month for equities, the S&P 500 rose 1.9% over the month, lifting its year-to-date gain to around 10%, and keeping the index near record highs. The rally follows an extended recovery since April, when concerns over sweeping U.S. tariffs briefly weighed on markets.
ISM Manufacturing PMI in Focus
Investors are now awaiting key economic reports, including Friday’s U.S. nonfarm payrolls data. Analysts suggest that a weak reading for August—after July’s surprisingly soft numbers and revisions to prior months—could strengthen expectations that the Federal Reserve may cut interest rates at its September 16-17 meeting. Economists forecast a modest addition of 74,000 jobs for August, up slightly from July’s 73,000.
Other data, such as Tuesday’s Institute for Supply Management (ISM) manufacturing index, are also in focus. The August reading is projected at 49.0, up from 48.0 in July but still below the 50-point threshold signaling expansion.
Nestle CEO Departure Shakes Shares
Nestle (LSE:0RR6) shares dropped more than 3% in early trading following the abrupt exit of CEO Laurent Freixe. The board announced his departure on Monday after an investigation found a violation of company policy due to an undisclosed romantic relationship with a subordinate.
Philipp Navratil, a longtime Nestle executive who previously led the Nespresso division, has been appointed as Freixe’s replacement effective immediately. The leadership shake-up comes amid ongoing challenges for Nestle, including muted sales growth and the departure of former CEO Mark Schneider last year. Long-time Chair Paul Bulcke has also indicated plans to step down in 2026.
Gold Reaches New Heights
Gold prices hit all-time highs on Tuesday as investors sought safe-haven assets amid expectations of U.S. rate cuts and uncertainty around trade policies. Spot gold surged 0.8% to $3,508.54 per ounce, while December gold futures touched $3,578.20 per ounce. By 03:27 ET, spot prices moderated slightly to $3,482.28 per ounce.
Silver rose to a near 14-year peak, and platinum remained close to an 11-year high. The dollar fell to a five-week low as markets priced in potentially lower borrowing costs. Non-yielding assets such as precious metals tend to benefit from lower interest rates, making them more attractive relative to government debt.
The gains were also driven by legal uncertainty surrounding U.S. trade tariffs, following a court ruling that found certain tariffs imposed by President Trump illegal. The ruling allows tariffs to remain until mid-October, but Trump has pledged to challenge the decision in the Supreme Court.
Oil Extends Gains
Crude prices advanced, with Brent November futures up 0.9% to $68.74 per barrel, building on Monday’s 1% gain. West Texas Intermediate (WTI) crude rose 1% to $65.24 per barrel following the U.S. holiday.
Traders weighed potential supply disruptions from the Russia-Ukraine conflict against rising output from OPEC+ members. Hopes for a peace deal have faded after calls for direct talks between Ukrainian President Zelensky and Russian President Putin. Increased airstrikes have raised the risk of sanctions on Russia, potentially affecting supply, while OPEC+ production increases have sparked concerns about oversupply. Markets now await the September 7 OPEC+ meeting for signals on future output.
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