U.S. stock futures pointed to a negative market open on Tuesday, as trading resumes after the Labor Day holiday. Investors will be gauging economic data releases in the shortened week ahead of the Federal Reserve’s next interest-rate decision on Sept. 18.
Dow Jones Industrial Average futures were down 185 points, or 0.5%. S&P 500 futures were also down 0.5% while Nasdaq 100 futures were falling 0.9%.
The big macroeconomic event of the week will be Friday’s U.S. job report. However, before then there will be eyes on ISM purchasing managers’ data for August on the manufacturing sector on Tuesday for more clues as to the depth of any economic slowdown.
“The slack in the manufacturing sector has been priced in for a while, and we’ll probably need to see a rather soft number to trigger recession alarms and drive the dollar materially lower. The consensus is looking at a modest improvement in August, from 46.8 to 47.5,” wrote ING analyst Francesco Pesole in a research note.
The yield on the benchmark 10-year Treasury note stood at 3.914% early on Tuesday, broadly flat from the previous week.