Stock futures were falling markedly in premarket trading Tuesday after shares staged a rally in the previous session.
There wasn’t one clear reason for the turnaround, but rather a combination of at least three things. One is the upcoming budget fight to prevent a government shutdown that has a critical deadline this weekend, with Republicans and Democrats still in a deadlock.
Another is the market digesting yesterday’s inflation numbers, which showed price gains cooling somewhat, but probably not enough to convince the Federal Reserve to cut interest rates any faster. The Fed’s next decision comes next week and it’s widely expected to keep borrowing costs on hold.