US pre-open: Futures lower following yesterday's rally

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Tuesday following solid gains in the previous session. As of 1215 GMT, Dow Jones futures were down 0.48%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.49% and 0.66% lower, respectively.

The Dow closed 216.90 points higher on Monday as investors bought the dip following last week's mega-cap tech selloff.

Comments from Federal Reserve governor Michelle Bowman were in focus early on Tuesday after she said the central bank's interest rate hikes were likely over with but also warned that she was not ready to begin trimming just yet. Bowman highlighted the Fed's progress on reining in inflation through tight policy and said: "Based on this progress, my view has evolved to consider the possibility that the rate of inflation could decline further with the policy rate held at the current level for some time."

Also drawing an amount of investor attention, US politicians struck a 2024 spending deal on Monday, seemingly avoiding a government shutdown and pulling the yield on the benchmark ten-year Treasury note back over the 4% line.

On the macro front, the National Federation of Independent Business' small business optimism index hit 91.9 in December, its highest reading in five months, compared to 90.6 in November and beating consensus expectations for a reading of 90.7. However, 23% of small business owners said inflation was still their single most important problem in operating their business, up one point from the prior month.

Still to come, November goods trade balance figures will be out at 1330 GMT, while Federal Reserve vice chairman for supervision Michael Barr will deliver a speech at 1700 GMT.

No major corporate earnings were slated for release on Tuesday.











Reporting by Iain Gilbert at Sharecast.com