Futures dip as Middle East tensions mount; jobs data on tap
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures off: Dow 0.41%, S&P 500 0.26%, Nasdaq 0.25%
Oct 2 (Reuters) -U.S. stock index futures slipped on Wednesday as geopolitical tensions in the Middle East and a domestic port strike kept investors on edge ahead of data expected to shed light on the health of the economy and the monetary policy trajectory.
Wall Street's main indexes had a dour start to the final quarter of the year, with the S&P 500 .SPX and the Nasdaq .IXIC touching about two-week lows in the previous session, as investors sold riskier assets after Iran fired missiles against Israel in retaliation for its attacks in Lebanon.
Markets held their ground as Israel and the U.S. vowed to strike back, although oil stocks such as SLB SLB.N and Occidental Petroleum OXY.N added about 2% each in premarket trading, tracking crude prices, which jumped more than 2.5% as traders priced in possible supply disruptions from the oil-rich region. O/R
Defense stocks such as Lockheed Martin LMT.N added 1.3% and RTX RTX.N gained 1.4% after the broader S&P 500 aerospace and defense index .SPLRCAERO hit a record high in the previous session.
"The situation remains highly volatile, but if Israel's response is not too aggressive, markets may take the view that both countries are for the second time this year preferring to de-escalate after a brief hostile exchange," analysts at ING bank said.
At 05:28 a.m. ET, Dow E-minis 1YMcv1 were down 174 points, or 0.41%, S&P 500 E-minis EScv1 were down 15.25 points, or 0.26% and Nasdaq 100 E-minis NQcv1 were down 50.25 points, or 0.25%.
Futures tracking the small-cap Russell 2000 index RTYc1 fell 0.8%, while safe-haven Treasury bonds dipped after Tuesday's surge. US/
The CBOE Volatility Index .VIX, Wall Street's fear gauge, hovered near a three-week high and was last at 19.5.
On the data front, the ADP National Employment survey for September, which is expected to provide insight on the state of the labor market, is due at 08:15 a.m. ET. The pivotal non-farm payrolls data for September is scheduled to be released on Friday.
Markets ended the last month on a strong note after the U.S. Federal Reserve kicked off its monetary policy-easing cycle with an unusual 50-basis-point rate cut in an effort to shore up the jobs market, which has taken on a greater importance in the central bank's dual mandate of price stability and low unemployment.
Odds of the Fed delivering a smaller quarter-percentage-point rate reduction in November stand at 63.3%, up from 42.6% a week ago, according to the CME Group's FedWatch Tool.
Investors also monitored a dockworkers' strike on the East and Gulf coasts which entered its second day. The walkout could cost the American economy roughly $5 billion a day, analysts at JPMorgan estimated.
Some companies such as Costco COST.O, Walmart WMT.N, Merit Medical Systems MMSI.O, McCormick MKC.N and Designer Brands DBI.N have said they had planned for the strike. Their shares were flat in premarket trading.
Analysts said the spike in oil prices, along with the port strike, could raise inflation, which neared the central bank's 2% target recently.
Among others, Dow-component Nike NKE.N slid 5% after withdrawing its annual revenue forecast just as a new CEO is set to take the helm at the sportswear giant.
Markets will also parse remarks from policymakers including Beth Hammack, Alberto Musalem, Michelle Bowman and Thomas Barkin through the day.
Reporting by Johann M Cherian in Bengaluru; Editing by Pooja Desai
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
