Wall Street futures extended losses in early-Tuesday trading as technology shares remained on the backfoot after a series of weak sessions, with focus now turning to key upcoming labor data for more cues on the economy.
Focus is also on consumer price index inflation data due later in the week, with Wall Street expected to move at a cautious pace in the coming sessions.
S&P 500 Futures fell 0.6% to 6,781.75 points, while Nasdaq 100 Futures slid 0.9% to 24,867.75 points by 00:55 ET (05:55 GMT). Dow Jones Futures fell 0.4% to 48,285.0 points.
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Nonfarm payrolls due ahead of CPI report Nonfarm payrolls data for November is due on Tuesday morning, with the print being slightly delayed due to disruptions caused by a government shutdown in October and early-November.
The print will be closely watched for more signs of immediate cooling in the labor market, which was seen steadily deteriorating in recent months.
The payrolls print also comes just days before CPI data for November, which will also be closely scrutinized by markets.
Labor strength and inflation are the Federal Reserve’s two main considerations for cutting interest rates, with the central bank having flagged a data-driven approach to further easing after cutting interest rates last week.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Comments from New York Fed President John Williams on Monday reiterated the Fed’s data-driven stance.
Markets are also focused on who will become the Fed’s next Chair, with reports stating that U.S. President Donald Trump had narrowed his shortlist for Jerome Powell’s successor to former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett.
Wall St dips on tech weakness; Nvidia steadies Wall Street indexes logged a negative session on Monday, pressured chiefly by a continued decline in tech shares as investors locked in profits and pivoted out of an artificial intelligence-fueled boom in the sector.
The move out of tech was also in part spurred by middling guidance from majors Oracle Corporation (NYSE:ORCL) and Broadcom Inc (NASDAQ:AVGO) last week, which raised questions over the long-term returns from AI.
NVIDIA Corporation (NASDAQ:NVDA) bucked the trend, rising 0.7% after JPMorgan suggested that recent declines in the stock presented a buying opportunity. But the stock lost momentum in after-hours trade, given that it is at the heart of an AI-fueled valuation boom and is vulnerable to profit-taking.
The S&P 500 fell 0.2% to 6,816.52 points, while the NASDAQ Composite fell 0.6% to 23,057.41 points. The Dow Jones Industrial Average fell 0.1% to 48,416.56 points.
