US pre-open: S&P 500 to retreat from one-month high

(Sharecast News) - US stock futures were pointing to a weak start on Wall Street on Tuesday, as investors returned to their desks after the three-day weekend in a risk-off mood. Just before 0700 ET, futures on the Dow Jones Industrial Average were flat at 34,878, the S&P 500 was trading down 0.1% at. 4,516, while the Nasdaq fell 0.2% to 15,482. Markets were closed on Monday for Labor Day.

The S&P 500 closed Friday's session at 4,515.77, its highest finish since 7 August.

A host of mixed economic data was dampening sentiment across Asian and European markets on Tuesday.

In China, the Caixin/S&P services purchasing managers' index (PMI) fell to an eight-month low of 51.8 in August from 54.1 in July, below consensus expectations of 53.0. Meanwhile, S&P's Eurozone composite PMI slipped for the fourth straight month to a 33-month low of 46.7 in August, from 48.6 in July, below consensus estimates and the flash reading of 47.0.

US factory orders for July are expected out at 0900 ET, and are predicted to show a 2.5% fall, wiping out a 2.3% increase in June.

"Markets [are] forecasting a potential July collapse that could see the biggest contraction since the Covid related slump in mid-2020," said Joshua Mahony, chief market analyst at Scope Markets.

"Coming off the back of a US jobs report that saw a jump in unemployment and a 30k downside revision to the prior payrolls release, a sharp contraction in factory orders today could similarly raise concerns that the US economy is rolling over."