Stock index futures traded in the red on Wednesday, a day after Wall Street’s main indexes fell by the most since the Aug. 5 rout.
S&P 500 futures (SPX) -0.3%, Nasdaq 100 futures (US100:IND) -0.4% and Dow futures (INDU) -0.3%.
The 10-year Treasury yield (US10Y) was down 1 basis point to 3.82%. The 2-year yield (US2Y) fell 2 basis points to 3.85%.
U.S. stocks sold off Tuesday as investors started September, a usually weak month for equities, with renewed worries about a sharp economic slowdown following soft updates on the manufacturing sector.
“As September got going after the Labor Day holiday on Monday, the month yesterday started living up to its billing as the worst month of the year for risk with a notable sell-off,” Deutsche Bank’s Jim Reid said.
The main catalyst for the sell-off was initially the latest ISM manufacturing print, which renewed investors’ concerns that the U.S. economy is running out of a bit of momentum, Reid added.
Nvidia’s (NVDA) 9.5% fall on Tuesday also weighed down the market. The chip giant erased nearly $280B in market value.
On the economic calendar, investors will be interested in the July JOLTS report, which will land during market hours. Economists expect a fall in job openings to 8.09M.
This labor report comes a couple of days before the key August nonfarm payrolls data, expected on Friday.
“U.S. data dominate the calendar. The JOLTs job openings data is expected to decline, reflecting reduced churn in labor markets. It will still be above pre-pandemic levels, reflecting a structural shift in recruiting,” UBS’ Paul Donovan said.
The July JOLTS report will reinforce the message that the labor market is cooling, Pantheon Macroeconomics said.
The Fed’s Beige Book will also come later in the day.