April 25, 2024
Stock Market

Dow futures sink over 100 points as doldrums persist


US stocks were poised for losses on Tuesday, signaling another day in the doldrums as healthcare insurers tumbled and investors faced up to the chances an interest rate cut will come later than hoped.

Futures on the Dow Jones Industrial Average (^DJI) slipped 0.3%, or 135 points, setting the blue-chip index back from a bid to reach the key 40,000 level. S&P 500 (^GSPC) futures shed 0.2%, while contracts on the tech-heavy Nasdaq 100 (^NDX) fell 0.3%

Stocks have made a lackluster start to the second quarter after racking up a string of records in the first months of 2024. Hotter-than-expected manufacturing readings have given weight to growing doubts the Federal Reserve will cut rates in the first half of the year as the US economy shows surprising resilience.

An update on job openings data later Tuesday should provide food for thought in the countdown to Friday’s jobs report, a key input in the Fed’s decision making. The market will also listen out for commentary from Fed officials Michelle Bowman, Loretta Mester and Mary Daly for clues to whether its inflation problem could derail the three rate cuts planned.

A pullback in health insurer stocks dragged on the markets early on Tuesday, after US regulators surprised the industry by failing to boost payments for private Medicare plans as usual. Humana (HUM) shares fell about 9%, while CVS (CVS) shed almost 6%.



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