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US futures indicated a softer start for Wall Street on Tuesday as attention shifted to forthcoming manufacturing and jobs data.
By 1220 BST, futures for the Dow Jones Industrial Average had declined by 0.5%, with S&P 500 futures down 0.6% and Nasdaq futures falling by 0.8%. The S&P Global manufacturing PMI for August is set for release at 1445 BST, while the ISM manufacturing PMI for the same month will be available at 1500 BST.
Joshua Mahony, chief market analyst at Scope Markets, highlighted the importance of the manufacturing sector's performance. He noted that the US ISM manufacturing PMI, scheduled for release later in the day, will be scrutinized following July’s disappointing figure, which hit an eight-month low. Traders are concerned about the sector's performance, particularly given the recent divergence between rising prices and decreasing output, a scenario the Federal Reserve would prefer to see resolved soon.
Looking ahead, the week will build up to Friday’s jobs report, with market participants watching for signs of an economic downturn. This comes after a surprising increase in unemployment, which reached its highest level since October 2021. The trend in unemployment will be pivotal in shaping market expectations for future Federal Reserve actions.
In corporate news, Southwest Airlines saw a pre-market boost following reports that Elliott Investment Management now holds a 10% stake in the company. This development grants the hedge fund the right to call a special meeting. The increased stake comes ahead of a scheduled meeting on 9 September to address issues that have led to a significant decline in Southwest’s stock value over the past three years.
Meanwhile, oil services firm Halliburton faced a setback after disclosing that a recent cyberattack had disrupted access to some of its business applications, impacting its operations.
