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Futures down: Dow 0.17%, S&P 500 0.08%, Nasdaq 0.05%
Oct 7 (Reuters) - U.S. stock index futures slipped on
Tuesday as investor fatigue set in a day after the S&P 500 and
the Nasdaq hit record closing highs, with focus now shifting to
a slate of Federal Reserve speakers for policy signals.
Equities have been climbing despite concerns over stretched
valuations, and reduced certainty around data after the federal
government shutdown entered its seventh day, leaving markets
vulnerable to a pullback.
"Stocks have rallied hard off the April lows and skipped
past the usual August-September weakness. So if we do see a
pullback in the fourth quarter, that could actually be a healthy
reset," wrote Bret Kenwell, U.S. investment analyst at eToro.
At 05:07 a.m. ET, Dow e-minis were down 82 points,
or 0.17%, U.S. S&P 500 E-minis were down 5.25 points, or
0.08%, and Nasdaq 100 E-minis were down 12.75 points, or
0.05%.
Still, the decline may prove temporary as optimism around
artificial intelligence and expectations of looser monetary
policy persist.
Traders expect the Federal Reserve to cut interest rates by
25 basis points at its meeting later this month, due to a string
of reports from last week suggesting labor market softening.
"The absence of data will keep the Fed on a glide path for
rate cuts with an improvement in labor data needed to shake the
policymaking committee off its dovish course," said Chris Hodge,
head U.S. economist at Natixis.
With no fresh economic data to guide them, investors will
turn to Fed commentary to help their portfolio positioning.
Fed Vice Chair for Supervision Michelle Bowman, Atlanta Fed
President Raphael Bostic, Fed Governor Stephen Miran and
Minneapolis Fed President Neel Kashkari are scheduled to speak.
Their remarks may offer insight into how officials are
navigating the absence of government data and what alternative
indicators they are watching.
Some analysts say the blackout will sharpen focus on the
upcoming earnings season, with forecasts and executive
commentary likely to carry more weight in shaping economic
expectations.
Among stocks, AMD inched up 2.5% premarket after
analyst upgrades, following a 23.7% gain in the previous
session. The company bolstered the tech rally after unveiling a
chip-supply deal with OpenAI on Monday.
Corona beer maker Constellation Brands ( STZ ) gained 3.1%
after posting a smaller-than-expected drop in second-quarter
sales.
Tesla was down 0.5% ahead of an event where it is expected
to unveil a more affordable version of its best-selling Model Y
SUV.
(Reporting by Niket Nishant in Bengaluru; Editing by Devika
Syamnath)