Traders work on the New York Stock Exchange (NYSE) floor on September 09, 2024 in New York City.
Spencer Platt | Getty Images
Stock futures dipped on Tuesday morning after the major averages rebounded from their worst week in 2024.
Futures tied to the S&P 500 declined 0.12%, while Nasdaq 100 futures fell 0.28%. Dow Jones Industrial Average futures were 0.15% lower.
In extended trading, cloud platform company Oracle surged nearly 9% after posting fiscal first-quarter results that topped expectations. Oracle also announced a partnership with Amazon Web Services to provide database services.
On Monday, the three major averages made a sharp comeback after posting their worst week this year as investors bought the dip. The S&P 500 popped 1.16% to snap a four-day run of losses and post its first winning day in September. The Nasdaq Composite also closed 1.16% higher, aided by a jump in Nvidia. The Dow climbed 484 points, or 1.2%.
These moves come as investors bet that a widely anticipated interest rate cut at the Federal Reserve’s Sept. 17-18 meeting could help assuage concerns over a weakening economy. August’s payrolls report, which came out last Friday, reflected growth of 142,000, below economists’ expectations. The results helped fuel a sell-off that day.
Traders have their eyes on two key economic reports that will likely be the next catalysts for stocks. The consumer price index report for August is due out Wednesday, followed by the producer price index on Thursday.
September is historically a weak month for equities. Investors remain cautious about seasonality’s effect on stock performance as well as uncertainty around the approaching U.S. presidential election on Nov. 5.
“We concur with the view that the market is likely to remain choppy at least until the election,” Bank of America equity and quantitative strategist Ohsung Kwon wrote Monday. “Macro data have been weakening, especially in manufacturing/goods, which represent 50% of earnings for the S&P 500.”