Traders faced a cautious start on Tuesday morning as stock futures dipped amid anticipation of November’s jobs report, which is expected to provide insights into the labor market’s current state. Futures tied to the Dow Jones Industrial Average fell by 164 points, translating to a loss of 0.34%. Meanwhile, S&P 500 futures declined by 0.56%, and Nasdaq 100 futures were down nearly 0.83%.
The previous day’s trading saw the three major U.S. stock indexes close lower, driven primarily by a downturn in prominent artificial intelligence companies. Broadcom experienced a notable drop of 5.6%, while software firm ServiceNow plunged 11.5%. Oracle shares also saw a decline, closing down 2.7%. Microsoft shares joined the trend, as many investors opted to take profits from recently surged AI trades, redirecting their funds into more stable sectors, including health care and utilities.
Despite these fluctuations, the U.S. stock market is still positioned for a positive annual outcome, with all eleven sectors of the S&P 500 recording gains throughout the year. Chris Verrone, head of technical and macro research at Strategas, expressed an optimistic outlook during a discussion on CNBC’s “Closing Bell.” He noted that certain segments of the economy appear to be gaining traction. “I think for the next four, five, six months, there is some runway here when you look at the real economy corners of the market,” Verrone remarked, highlighting sectors like industrials, financials, discretionary, and materials as areas showing encouraging growth trends.
The highly anticipated November jobs report, scheduled for release Tuesday morning, may serve as a catalyst for market movement. Economists surveyed by Dow Jones forecast an increase of 50,000 nonfarm payrolls, a significant decline from the 119,000 added in September. Additionally, projections suggest that the unemployment rate may rise slightly to 4.5%, compared to 4.4% the previous month. Investors are also awaiting October’s retail sales report, set to be released soon, as well as the consumer price index for November, which is expected on Thursday. These key economic indicators are likely to influence market sentiment in the coming days.
