U.S. stock futures are trading slightly lower. Ahead of tonight's ISM Manufacturing Index and JOLTS job openings data, earnings from AI-related semiconductor companies are expected to be the market's focus.
S&P 500 futures are trading at 7,696.00, down 3.00, while Nasdaq 100 futures are at 29,490.50, down 22.50, in the U.S. stock futures market. Dow futures are up 13 points, and investors will be watching the market's intraday direction today. Long-term yields remain firm, and stocks are likely to come under some initial selling pressure.
In the previous session, all three major New York indexes fell for a second straight session. The Dow closed down 374 points at 53185, while the S&P 500 and Nasdaq also finished lower, although they pared their losses. Geopolitical risks surrounding potential Iranian retaliation and rising crude oil prices heightened concerns over inflation, fueling expectations of higher interest rates.
While the market is expected to show some resilience today, the prolonged turmoil in the Middle East and the factors behind higher oil prices and interest rates will remain a burden. Weak readings for the ISM Manufacturing Index and JOLTS job openings could provide a catalyst for selling. At the same time, expectations of an early rate hike by the Federal Reserve are seen as likely to subside.
AI semiconductor-related earnings reports are due in succession this week, with Dell Technologies scheduled to report today, Broadcom tomorrow and Ciena the day after tomorrow. These reports could support the market.