Stock futures traded slightly higher on Monday evening as investors tried to shake off the previous session’s selloff.
Futures tied to the Dow Jones Industrial Average added 35 points, or 0.1%. S&P 500 futures and Nasdaq-100 futures each gained 0.1%.
Monday’s close marked a negative start to the trading week. The Nasdaq Composite led the downward charge, falling 1.93% to end the session at 11,239.94. The S&P 500 lost 1.79% to end at 3,998.84, followed by the Dow down 1.4%, or 482.78 points, to 33,947.10.
Better than expected in November ISM services data that looks at the level of manufacturers’ purchases as an indicator of the health of the broader economy put pressure on stocks. That’s because investors are growing wary that the Federal Reserve will need to raise interest rates for longer than previously expected to achieve its intended goal of reducing inflation.
The edition is in accordance with payroll report at the end of last week in indicating a sustainable economy. But those pieces add to what Dan Greenhouse, chief strategist at Solus Alternative Asset Management, called a more “mixed” data package that is giving investors mixed signals about the state of the economy.
Market watchers still largely expect a 50 basis point rate hike at the Fed’s December meeting. But Greenhouse said investors were conflicted about how long the central bank’s rate hike campaign would have to continue, especially given recent data showing the economy remains strong in some areas.
“From a market perspective, I think you’re still struggling with transition days from days of 75 basis point hikes,” Greenhouse said on CNBC’s “Closing Bell: Overtime.” “And now you’re really focusing on, ‘How high do we really have to go to reduce all inflation?’
Investors will look to Tuesday morning’s international trade data to get a sense of the strength of the US and global economy. Later in the day, they’ll be watching for post-call earnings reports from Smith & Wesson and Stitch Fix.
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