US stock futures slipped on Tuesday to start a holiday-shortened trading week, as Wall Street started to look ahead to a crucial monthly jobs update that will shape expectations for interest-rate cuts.
Dow Jones Industrial Average futures (YM=F) slid 0.4%, while those on the S&P 500 (ES=F) dropped 0.5%. Contracts on the tech-focused Nasdaq 100 (NQ=F) fell 0.7%, on the heels of another winning month for major Wall Street stock indexes.
45,360.00
-241.00
(-0.53%)
As of 6:40:56 GMT-4. Market open.
YM=F NQ=F ES=F
Wall Street is set for a delayed open to the week after Monday’s closure for the Labor Day holiday. Investors are braced for a tumultuous month, with legal drama around President Trump’s tariffs and concerns over Fed independence in high focus.
Gold (GC=F) surged to above $3,500 an ounce on Tuesday to eclipse April’s all-time high at one point. The latest run has been fueled by expectations that the Federal Reserve will lower interest rates this month, after Chair Jerome Powell opened the door to a reduction.
Those rate-cut bets face a key test in Friday’s jobs report for August — in keen focus, after disappointing inflation data dented stocks last week. Readings on job openings and private payrolls precede the crucial report, while an update on US manufacturing on Tuesday will shed light on the economy.
Markets are pricing in roughly 90% odds of a 25 basis point rate cut in September, but this week’s data could help make the case for deeper easing.
Meanwhile, investors are watching developments in Washington that could test the Fed’s independence. A court hearing last week on whether Trump can fire Fed Governor Lisa Cook ended without a ruling as the president continues to make attempts to stack the Fed’s Board of Governors in his favor.
The first market moves in September also follow a potentially major legal blow to Trump’s trade agenda. A federal appeals court ruled Friday that the bulk of Trump’s sweeping global tariffs were unconstitutional. Trump blasted the decision as “highly partisan” and vowed to take the case to the Supreme Court.
The uncertainty could add another overhang for markets just as the calendar flips to September, historically the weakest month for stocks. The S&P 500 has dropped an average of 4.2% over the past five Septembers and more than 2% over the last decade.
Earnings seasons continues this week, albeit at a slower pace than throughout much of August. Zscaler (ZS), Macy’s (M), and DocuSign (DOCU) all report in the coming days.
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