The major U.S. index futures indicate a moderately higher opening on Tuesday, suggesting that stocks are poised to rebound following the recent pullback observed in the prior session. Initial purchasing enthusiasm could be sparked by a resurgence in Bitcoin, which is experiencing an increase of over 2 percent following a significant decline on Monday, while tech stocks such as Oracle, Nvidia, and Broadcom are exhibiting notable pre-market strength. Overall trading activity may be relatively muted, as market participants await the release of significant U.S. economic data. On Wednesday, the payroll processor is set to publish its report on private sector employment for November, with projections indicating an increase of 10,000 jobs after a rise of 42,000 in October. The data may shape expectations for interest rates ahead of next week’s Federal Reserve meeting, currently assigns an 87.4 percent probability to a quarter-point rate cut, up from 63.0 percent a month ago. Upcoming reports on service-sector activity, personal income and spending, and consumer sentiment are also likely to draw considerable attention.
Following initial pressure at the start of Monday’s session, equities attempted a recovery during mid-day trading but eventually reverted to a downward trajectory as the day progressed, leaving the major averages solidly in negative territory. The Dow declined by 427.09 points, or 0.9 percent, to 47,289.33; the Nasdaq fell 89.76 points, or 0.4 percent, to 23,275.92; and the S&P 500 dropped 36.46 points, or 0.5 percent, to finish at 6,812.63. The current decline on Wall Street is attributed to traders locking in profits after last week’s rally, during which the major averages rebounded sharply from the pronounced downturn earlier in November and posted five consecutive winning sessions, gradually moving back toward record highs. Recent stock-market developments reflect renewed optimism regarding the trajectory of interest rates, fueled by dovish remarks from key Federal Reserve officials.
Nevertheless, the forthcoming release of crucial U.S. economic data may influence the perspectives of Federal Reserve policymakers, maintaining a degree of unease among traders. The Institute for Supply Management reported an unexpected decline in U.S. manufacturing activity for November, with the manufacturing PMI dropping to 48.2 from 48.7 in October, signaling contraction and falling short of analyst expectations for a modest rise to 49.0. Utilities stocks logged a notable decline, with the Dow Jones Utility Average sinking 2.3 percent to its lowest closing level in two months, while significant weakness was also evident in biotechnology stocks, highlighted by a 2.1 percent fall in the NYSE Arca Biotechnology Index.
Networking, healthcare, and computer hardware stocks similarly posted considerable declines, contrasting with energy stocks, which managed to defy the broader market’s weakness thanks to a marked rise in crude-oil prices. The combination of shifting rate expectations, mixed sector performance, weakening manufacturing data, and pending economic releases continues to shape a cautious yet reactive trading environment as investors navigate both macroeconomic uncertainty and the near-term direction of Federal Reserve policy.