Traders Brace for Retail Sales Data Amid Rate Cut Talks

U.S. stock index futures dipped Tuesday as traders eyed retail sales data ahead of a Federal Reserve rate cut. Rising bond yields increased pressure, while tech giants traded mixed in premarket. Despite dip in futures, major indexes closed strong Monday, with optimism over anticipated Fed actions.

On Tuesday, U.S. stock index futures saw a decline as traders awaited retail sales data, anticipating its impact on an upcoming Federal Reserve rate cut. This dip was exacerbated by rising bond yields, particularly as the 10-year Treasury note yield climbed over 4.42%.

Economists predict a 0.5% rise in November retail sales, set for release at 8:30 a.m. ET. After a strong session Monday, with the Nasdaq at record highs, tech giants like Nvidia and Microsoft showed mixed results in premarket trading, whereas Tesla stock surged following a significant rally.

Market sentiment shifted with a 25 basis point cut from the Fed expected. However, prolonged inflation might challenge optimistic forecasts. Despite this uncertainty, the S&P 500 is projected to close the year with its best performance since 2019, driven by factors like tech growth and policy expectations.

(With inputs from agencies.)