Market Movements Ahead of Key Economic Data: A Crucial Week for Traders

U.S. stock index futures declined early Tuesday as traders anticipate crucial economic data throughout the week, potentially influencing Federal Reserve's monetary policy. Despite recent gains, looming labor market and manufacturing reports could sway investor sentiment. Key stock movements included declines in chip stocks, while Tesla and Southwest Airlines displayed gains.

U.S. stock index futures dipped early Tuesday, as traders brace for a series of economic data reports this week that could impact the Federal Reserve's decisions on monetary policy.

Despite early August's losses, the blue-chip Dow and the S&P 500 ended higher on Friday, each achieving their fourth consecutive month of gains. Robust economic data and moderating price pressures were key drivers. However, with the historically weak September ahead, market sentiment remains cautious.

Key labor and manufacturing data are expected this week. The ISM manufacturing survey's results are due at 10 a.m. ET, with economists predicting a rise to 47.5, albeit still in contraction mode. Labor market statistics will be under close scrutiny, especially after July's report pointed to a slowdown, causing a global selloff in risker assets. The central bank's upcoming meeting and potential interest rate cuts, supported by Chair Jerome Powell, are also in focus.

(With inputs from agencies.)