Stock futures fell on Tuesday as Wall Street saw a modest rebound ahead of another rate hike from the Federal Reserve.
Futures for the Dow Jones industrial average fell 155 points, or 0.58%. S&P 500 futures were down 0.57%, while those for the Nasdaq 100 were down 0.67%.
The Federal Open Markets Committee begins its September meeting on Tuesday, where central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday. Stocks fell in recent weeks as comments from Federal Reserve Chairman Jerome Powell and an unexpectedly warm August consumer price index report prepared traders for even higher rates until inflation eases.
“Increased fears of recession risk helped keep U.S. policy rate prices on the upside from early 2023 to early 2026, and may help explain why equity volatility is higher than the macro landscape,” Goldman Sachs’ Dominic Wilson wrote in a note. Customers Tuesday. “However, markets should adjust significantly further if the more bleak outlook for the labor market is correct.”
Wilson said the S&P 500 would need to trade in a range of 2900 to 3375, and 5-year yields would need to be between 4.5-5.4% if the Fed were to see higher unemployment to gain hope for inflation.
During a busy trading session on Monday, Stocks rallied in the afternoon They need to snap a two-day losing streak and recover some of their recent losses. The Dow rose 197 points, or about 0.6%. The S&P 500 and Nasdaq Composite rose 0.7% and 0.8%, respectively.
However, after the market closed on Monday, Ford announced that supply chain issues would cost the automaker An additional $1 billion in the third quarter. Shares fell nearly 5% in premarket trading.
On the economy, investors will get a fresh look at the housing market on Tuesday morning, with August reports for housing starts and building permits.