Stock Market News: Dow Set to Open Down

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U.S. stock futures were mixed early Tuesday after strong retail sales data added to worries that the Federal Reserve will have to maintain high interest rates to keep inflation under control.

Dow Jones Industrial Average futures rose 151 points, or 0.1%. Futures on the S&P 500 were up less than 0.1%, while those on the Nasdaq 100 were down less than 0.1%. All three indexes closed lower for a second straight session Monday.

Signs that consumers are still spending, better-than-expected results from Goldman Sachs, and concern that renewed tension in the Middle East will keep energy prices elevated are weighing on investors’ minds. Worries about the Fed were reflected in rising bond yields Monday–the 10-year Treasury yield inched up to 4.633% early Tuesday.

The bigger issue is whether stocks are starting a broader correction, which could see them fall further. On the other hand, it could also be a bump in the road or of the bull market that has helped the S&P gain more than 20% over the past year.

“A stock market correction is unfolding right now triggered by Middle East tensions, rising bond yields and worries about delayed Fed rate cuts.,” said James Demmert, chief investment officer at Main Street Research. “The magnitude of this stock market correction will depend in large part on what’s going on in the Middle East.”

Demmert added that a correction is an opportunity to buy stocks.

“We are buyers of this stock market correction because while the headlines are scary right now, we believe we have entered a new bull market led by the power of artificial intelligence,” he said. “This new bull market can last for another 7-9 years.”