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U.S. stock index futures were mixed on Tuesday, marking a tepid start to the holiday-shortened week as last week’s rally cooled off.
Dampening sentiment was the decline in global stock markets, hurt by disappointing economic data from Europe, while China saw the slowest growth in services activity this year.
Dow futures (INDU) rose 0.1%, while S&P futures (SPX) slipped 0.1%. Nasdaq 100 futures (NDX:IND) fell 0.3%.
Major market indices were closed on Monday for Labor Day, although stock index futures moderated in thin holiday trading after rising slightly amid growing bets that the Federal Reserve will hold off on further rate hikes.
“The risk-off rotation in early/mid-August and the recent rebound in risk factors is a reminder that a clear economic path remains elusive,” said 22V Research’s Dennis DeBusschere. “Market internals should be more normal, but data that suggests more Fed tightening might be needed will lead to increased recession risk.”
Rates ticked higher, with the 10-year Treasury yield (US10Y) up 2 basis points at 4.22% and the 2-year yield (US2Y) up 1 basis point at 4.91%.
See how yields are trading across the curve.
The economic calendar for the day is fairly light, with factory orders data expected after markets open.
