US stock futures are moving modestly, with S&P futures higher and Nasdaq futures slightly lower. Market developments in response to long-term interest rates will be closely watched. Investors will also assess tonight's PMIs, the outlook for US-China talks, and sentiment ahead of President Trump's speech.
In the US stock futures market, S&P 500 futures are slightly higher, Nasdaq 100 futures are slightly lower, and NY Dow futures are up $64. Long-term interest rates are expected to remain elevated, suggesting that conditions generally remain unfavorable for buying.
The three major New York stock indexes closed mixed the previous day. The Dow fell back as much as $185, the S&P turned lower for the first time in four sessions, while the Nasdaq set a record high for the fourth consecutive session. Selling in the financial sector weighed on the market, with the cautious stance of European financial executives cited as a contributing factor. At the same time, technology stocks attracted buying at times following talks on AI.
Downside is also expected to be limited today. If afternoon manufacturing and services PMIs come in below their previous readings as expected, selling may lead on concerns about deteriorating business conditions. AI-related stocks, particularly semiconductor names, may continue to attract buying, but sectors facing adverse impacts are expected to remain vulnerable to further selling.