U.S. equity futures pointed to a modestly positive start on Tuesday, suggesting Wall Street may attempt to regain momentum after Monday’s decline.
A renewed bounce in Bitcoin—up more than 2% after its sharp selloff to start the week—is helping lift sentiment, with tech names also showing early strength. Oracle (NYSE:ORCL), Nvidia (NASDAQ:NVDA), and Broadcom (NASDAQ:AVGO) were among the notable gainers in pre-market trading.
Despite the early upside, activity is expected to remain restrained as investors brace for a packed calendar of economic reports.
The first key release arrives Wednesday when ADP publishes its November private-sector payroll figures. Economists are looking for a modest gain of roughly 10,000 jobs, compared with the 42,000 added in October. The numbers will be closely watched ahead of next week’s Federal Reserve meeting.
Expectations for another rate cut continue to rise, with the CME FedWatch Tool showing an 87.4% probability of a quarter-point reduction—significantly higher than the 63% chance priced in a month ago.
Investors will also parse upcoming updates on services activity, household income and spending, and consumer sentiment, all of which could influence rate expectations heading into mid-December.
On Monday, stocks attempted to climb back after an early slump, but selling pressure eventually returned. All three major indexes closed firmly lower:
- Dow Jones Industrial Average: -427.09 points (-0.9%)
- Nasdaq Composite: -89.76 points (-0.4%)
- S&P 500: -36.46 points (-0.5%)
The pullback came after a strong streak last week, during which the major averages logged five straight sessions of gains and erased much of November’s earlier dip. Monday’s weakness suggested some investors were locking in profits after the rebound.
Recent optimism surrounding interest-rate policy—driven by dovish comments from senior Fed officials—could be challenged by the upcoming data releases.
Adding to the caution, the ISM’s November manufacturing index unexpectedly fell to 48.2 from 48.7, indicating continued contraction rather than the slight improvement economists had forecast.
Sector performance varied widely. Utilities led the losses, with the Dow Jones Utility Average dropping 2.3% to a two-month low. Biotech stocks also slid, reflected by a 2.1% fall in the NYSE Arca Biotechnology Index. Networking, healthcare, and hardware names weakened as well, while energy stocks stood out on the upside thanks to rising crude oil prices.
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