US stock futures nudged up on Tuesday as investors eyed the prospects for interest-rate cuts ahead of marquee inflation readings later in the week, with Apple’s (AAPL) annual iPhone event in closer view.
Futures attached to the Dow Jones Industrial Average (YM=F) hovered above the flat line, while those on the S&P 500 (ES=F) inched up 0.1%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) put on 0.2%, after stocks rose on Monday to lift the Nasdaq Composite (^IXIC) to a record high.
Markets are starting to debate the scope of Federal Reserve easing after a slew of indications that the labor market is in the midst of a slowdown. Those signs have convinced traders that an interest-rate cut is coming at the Fed’s September meeting next week. Now the question is how large the reduction might be.
On Tuesday, investors get further insight into the labor market with the release of revisions to earlier months’ jobs data. Economists expect the new Bureau of Labor Statistics numbers to show slower job growth.
More crucial releases will land later this week, with the latest reading of the producer price index (PPI) on Wednesday and the consumer price index (CPI) on Thursday.
Fed officials face a tricky balancing act in trying to manage stubborn inflation against an increasingly shaky labor market. The CPI and PPI readings will shine light on whether rising prices could become a significant stumbling block to deep or sustained rate cuts.
Also in focus is Apple’s annual fall event, where the tech giant is expected to showcase devices including the iPhone 17 and iPhone Air, as well as new watches and heart rate-tracking AirPods. Experts question whether the smartphone updates can generate enough consumer interest to drive up sales, especially following a tariff-fueled buying frenzy earlier this year.
Oracle (ORCL) and GameStop (GME) are set to report earnings after the bell.
LIVE 1 update
- Gold touches new record overnight
Gold (GC=F) reached a new record overnight Monday into early Tuesday morning, buoyed by optimism over a rate cut at the Fed’s meeting next week.
Bloomberg reports: