U.S. stock futures pushed toward record highs on Tuesday as investors waited for new jobs data and Fedspeak to boost or dent growing hopes for rate cuts.
Futures on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) fell about 0.1%, setting new records for the indexes. Dow Jones Industrial Average futures (YM=F) traded mostly flat.
Investors are bracing for a readout later on JOLTS job openings in October, the first in a wave of key data this week that culminates in Friday’s all-important monthly U.S. payrolls report.
The wait is on for signs of a soft landing for the economy, which will shape the view on the interest rate path – especially after Federal Reserve officials hinted that they are still open to a rate cut in December.
Traders now estimate about a 73% chance that the Fed will cut rates by a quarter of a percentage point at its Dec. 18 meeting, up from 62% a day ago, according to the CME FedWatch tool.
Those odds could change after appearances by Fed policymakers Austan Goolsbee and Adriana Kugler later Tuesday, which set the stage for Fed Chair Jerome Powell’s panel discussion on Wednesday.
On the corporate front, shares of Tesla (TSLA) fell in pre-market trading after deliveries of the EV maker’s Chinese-built models fell again, calling into question its sales targets. In addition, CEO Elon Musk’s $56 billion pay deal was again rejected by a judge.
Meanwhile, shares in US Steel ( Trump said fiscal stimulus and tariffs will allow the US steel giant to thrive on its own.
Political turmoil in France is also drawing market attention, with the government on the brink of collapse as it faces a parliamentary vote. Now that Germany is also heading for early elections after the collapse of the government, Wall Street is keeping a close eye on the two pillars of the EU.
