Futures tracking the S&P 500 and Nasdaq edged higher on Tuesday, as investors eyed the next batch of economic data that could offer hints on the US Federal Reserve's monetary tightening plans, while a profit warning from Walgreen Boots weighed on Dow futures. In pre-market trading, S&P 500 and Nasdaq futures gained about 0.14 percent and 0.34 percent, respectively. Futures tied to the Dow Jones Industrial Average lost 29 points.

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Walgreens Boots Alliance tumbled 7.1 percent in premarket trading as it posted weaker-than-expected earnings and slashed its financial year profit forecast on lower demand for coronavirus tests and vaccines as well as lower consumer spending. However, gains in megacap stocks such Amazon, Tesla and Nvidia supported market sentiment.

Apart from key figures, including new home sales, monthly durable goods and consumer confidence data, due today, market participants are also focusing on Federal Reserve Chair Jerome Powell's speech before the European Central Bank forum at Sintra in Portugal.

Several key policymakers including Fed Chair, Bank of England governor Andrew Bailey, and Bank of Japan Governor Kazuo Ueda are due to speak at a panel with ECB President Christine Lagarde on Wednesday.

"We are still seeing the markets adjusting to the growing acceptance that central banks, the Fed included, may not be cutting interest rates this year and that further hikes are coming," Stuart Cole, chief macro economist at Equiti, told news agency Reuters.

"Specifically for the US, it raises questions about whether or not the Fed can achieve a soft landing," Cole stated.

In the broader market, European shares were under pressure to maintain positive momentum after Asian stocks were boosted by the Chinese government saying it would support the economy, with investors focused on concern over the European and US economic outlook.

On Monday, US stocks closed lower, as investors were wary of betting on riskier assets before seeing the outcome of Russia's aborted weekend mutiny.

The rebellion by Russian mercenaries raised questions about President Vladimir Putin's future. While Putin had thanked mercenary fighters and commanders who had stood down to avoid bloodshed, the US State Department said the situation in Russia remained dynamic.

The S&P 500 fell 19.51 points, or 0.45 percent, at 4,328.82; and the Nasdaq Composite lost 156.74 points, or 1.16 percent, to 13,335.78. Meanwhile, Dow plunged 12.72 points, or 0.04 percent, to 33,714.71. It was the sixth consecutive negative session for the 30-stock Dow, its longest losing streak since September last year.

First Published:Jun 27, 2023 7:09 PM IST