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Stock market today: US futures tread water as Wall Street remains cautious

Apr 16, 2024, 16:54 IST
Business Insider
Fed chair Jerome Powell.Aaron Schwartz/Getty Images
  • US futures were flat ahead of Tuesday's opening bell after a lackluster start to the week.
  • Equities dropped on Monday as investors turned to risk-averse assets amid geopolitical tensions.
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US futures were little changed on Tuesday morning after a losing start to the week for all three major indices on Monday as investors worried about the Israel-Iran conflict.

S&P 500 futures were trading flat shortly before 5 a.m. ET. Nasdaq 100 futures were also level, while Dow Jones Industrial Average futures fell 0.1%.

US equities suffered setbacks across the board on Monday. The Dow marked its sixth consecutive losing day, dropping 248 points or 0.65%. The S&P 500 dropped 1.2%, while the Nasdaq Composite slid below its 50-day moving average for the first time since November, losing 1.79%.

The benchmark 10-year Treasury yield remained level overnight, remaining near its highest level in five months. The combination of solid retail sales data and the risk-off nature of the Israel-Iran conflict saw yields on treasuries advance three basis points the previous day.

The US Dollar Index, which measures the greenback's strength against six other currencies, rose by 0.1% overnight, also keeping level with solid gains on Monday.

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Elsewhere, the release of strong March retail sales data on Monday signaled the resilience of the US economy, but also pushed back chances that the Fed will cut interest rates in June. September is considered to be the most likely point at which the Fed will act.

Traders will be looking to a series of talks from key figures at the Federal Reserve, including Chair Jerome Powell and Vice Chair Philip Jefferson, for a clearer indication.

Also coming on Tuesday, the IMF will be publishing its latest World Economic Outlook, while major banks releasing quarterly earnings today include Bank of America and Morgan Stanley.

United Health and Johnson & Johnson are also expected to announce earnings.

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