U.S. stock futures edged lower Tuesday after a three-day break, cooling a recent rally as bond yields were rising again.
What’s happening
- Futures on the Dow Jones Industrial Average YM00 fell 111 points, or 0.3% to 33047.
- Futures on the S&P 500 ES00 dropped 12.75 points, or 0.3%, to 4143.
- Futures on the Nasdaq 100 NQ00 decreased 5.5 points, or 0% to 12672.
On Friday, the Dow Jones Industrial Average DJIA rose 576 points, or 1.76%, to 33213, the S&P 500 SPX increased 100 points, or 2.47%, to 4158, and the Nasdaq Composite COMP gained 390 points, or 3.33%, to 12131.
The S&P 500’s 6.6% surge last week was the best since the period ending Nov. 6, 2020.
What’s driving markets
Heading into the final day of the month, investors were looking to see if the recovery from the lows of mid-May will continue.
Interest-rate policy will be in the spotlight with President Joe Biden set to meet Fed Chair Jerome Powell in the afternoon. In an op-ed in The Wall Street Journal, Biden said he would not seek to influence the Fed’s decisions.
A hawkish speech delivered Monday by Christopher Waller, a Fed governor, didn’t seem to help sentiment. Waller said he supports half-point rate increases until there are signs inflation is cooling toward its 2% target. The core reading of the Fed’s preferred inflation gauge was 4.9% in April.
The yield on the 10-year Treasury BX:TMUBMUSD10Y rose 8 basis points to 2.82%.
Waller said the May employment and CPI reports will be key pieces of data “to get information about the continuing strength of the labor market and about the momentum in price increases.” The May jobs report is due on Friday, and the CPI report is set for release the following Friday.
Investors also are absorbing the news that Shanghai, China’s largest city, set plans to reopen.
The European Union separately agreed on a partial ban on Russian crude, to be phased over several months.