Last Updated: 4:02 PM EST
Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 3.15%, 2.11%, and 1.51%, respectively. Earlier today, the Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2% in the third quarter.
This is lower than its previous estimate of 2.5%, which can be attributed to this morning’s releases from the Census Bureau and the Institute for Supply Management.
Indeed, the Census Bureau released its U.S. Construction Spending report, which measures the month-over-month change in construction spending. During July, the amount of spending decreased -0.3%, which was lower than the expected growth of 0.1% predicted by forecasters. This is on top of the -0.3% decline seen in June.
Furthermore, the Institute for Supply Management put out its monthly report for the ISM Manufacturing Purchasing Managers’ Index, which measures the month-over-month change in production levels. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 47.2, which was lower than the expected 47.5.
First Published: 3:20 AM EST
U.S. futures inched lower on Tuesday morning as investors cautiously entered a new trading month, September, historically considered the dullest month for the U.S. stock market. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.33%, 0.13%, and 0.15%, respectively, at 2:47 a.m. EST, September 3.
This cautious start follows August’s volatile period, which began with a selloff driven by recession fears. However, sentiment improved over time as positive economic data and rising expectations of interest rate cuts from the Federal Reserve lifted market confidence.
Importantly, the S&P 500 gained 2.3% last month, marking its fourth straight monthly gain. Also, the Dow Jones and the Nasdaq Composite closed higher by 1.8% and 0.7%, respectively.
Today, investors will closely watch August’s ISM Manufacturing Purchasing Managers’ Index (PMI) data. Also, the U.S. Construction Spending report for July is scheduled for release today. On the earnings front, Gitlab (GTLB), Zscaler (ZS), and PagerDuty (PD) are set to release their quarterly numbers later today.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 3.909%. At the same time, WTI crude oil futures trended higher, hovering near $74.05 per barrel as of the last check.
Elsewhere, European markets opened higher on Tuesday, recovering from yesterday’s sluggish trading session.
Asia Pacific Markets Traded Mixed on Tuesday
Asia-Pacific indices traded mixed today as investors awaited key economic data from the U.S. and China scheduled for release this week. Simultaneously, market sentiment was impacted by South Korea’s August inflation figures, which fell to their lowest level since March 2021.
At the time of writing, Hong Kong’s Hang Seng index was down 0.37%. Further, China’s Shanghai Composite and Japan’s Nikkei indices declined 0.29% and 0.04%, respectively. However, China’s Shenzhen Component and Japan’s Topix indices closed higher by 1.17% and 0.64%, respectively.
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