U.S. equity futures pointed to a muted open on Tuesday, suggesting stocks may struggle to gain traction after a volatile session on Monday ended modestly lower.
Market participants appear hesitant as they digest a mixed batch of U.S. labor market data, which offers conflicting signals about the pace of economic momentum.
According to the Labor Department, nonfarm payrolls increased by 64,000 in November, beating expectations for a 50,000 gain. However, the improvement followed a sharp downward revision in October, when payrolls fell by 105,000.
At the same time, the unemployment rate rose to 4.6% in November from 4.4% in September, slightly exceeding forecasts for a move to 4.5%.
Meanwhile, data from the Commerce Department showed that retail spending lost momentum in October. Overall retail sales were flat following a modest upward move in September, missing consensus estimates for a 0.2% increase.
Excluding autos, retail sales posted a stronger showing, rising 0.4% in October after a 0.1% gain the previous month, beating expectations.
On Monday, stocks initially advanced as investors looked for bargains after Friday’s sharp selloff, but the rally faded quickly. The major indexes spent most of the session near flatline levels before closing modestly lower.
The Nasdaq led losses, falling 0.6%, while the S&P 500 slipped 0.2% and the Dow Jones Industrial Average edged down 0.1%.
Concerns about elevated artificial intelligence spending continued to weigh on technology shares, particularly companies such as Broadcom (NASDAQ:AVGO) and Oracle (NYSE:ORCL). Investors also remained cautious ahead of upcoming economic releases that could shape interest-rate expectations.
Although the Federal Reserve delivered a widely expected quarter-point rate cut last week, policymakers’ projections revealed notable disagreement over how aggressively rates may be lowered going forward.
Sector performance reflected the broader uncertainty, with hardware and software stocks extending recent declines, while healthcare and pharmaceutical shares outperformed the wider market.
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