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Futures down: Dow 0.30%, S&P 0.12%, Nasdaq 0.16%
April 2 (Reuters) - U.S. stock index futures dipped on
Tuesday, hurt by sharp losses in shares of health insurers,
while investors awaited more economic data and comments from
Federal Reserve officials for hints on the timing of interest
rate cuts.
Shares of UnitedHealth ( UNH ), CVS Health ( CVS ) and
Humana fell between 3.8% and 8.7% in premarket trading
as the U.S. government's unchanged reimbursement rates for
providers of Medicare Advantage health plans signaled that
insurers' margins would likely remain under pressure next year.
The blue-chip Dow and the benchmark S&P 500
closed down on Monday after stronger-than-expected manufacturing
data raised doubts over the Fed's three interest rate cuts that
it had outlined in its forecast at the last policy meeting.
Data expected on Tuesday includes factory orders and job
openings in February. However, the main focus is on Friday's
U.S. non-farm payrolls data, which is expected to show job
additions slowed in March although average earnings ticked
higher compared to the previous month.
"Markets will be looking for a figure that is neither too
hot as an overheated market might postpone rate cuts, or too
cold as disappointing data would increase speculation of a hard
economic landing," said Russ Mould, investment director at AJ
Bell.
Traders are pricing in a 62% chance of the Fed cutting
interest rates by 25 basis points in June, as well as see two
more cuts in 2024, as per CMEGroup's FedWatch tool.
A host of Fed officials including New York Fed President
John Williams, Cleveland Fed President Loretta Mester and San
Francisco President Mary Daly are scheduled to speak later in
the day.
At 5:53 a.m. ET, Dow e-minis were down 119 points,
or 0.3%, S&P 500 e-minis were down 6.5 points, or 0.12%,
and Nasdaq 100 e-minis were down 29.5 points, or 0.16%.
The subdued start to the new quarter comes on the heels of
the S&P 500's strongest first quarter in five years and all the
three major indexes hitting record highs, helped by optimism
around artificial intelligence and expectations of easing
monetary policy.
Among other stocks, Calvin Klein-parent PVH Corp's shares
tumbled 23.4% after the retailer forecast an about 11%
drop in first-quarter revenue.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shinjini
Ganguli)