Dow, Nasdaq Futures Dip As Trade, Fiscal Uncertainties Abound — But Strategist Says Current Market Recovery Is ‘Real’

U.S. stock futures headed lower overnight after the market shrugged off early weakness and ended Monday’s session moderately higher.  

The apprehension comes amid the Trump administration’s efforts to pass the “one big, beautiful bill.” Fund manager Louis Navellier sees the tax cuts as a way to increase the velocity of money and bring about prosperity.

As of 12:15 p.m. ET on Tuesday, the S&P 500, the Nasdaq 100, and the Dow futures slid over 0.30%, while the Russell 2000 futures moved down over 0.50%.

West Texas Intermediate (WTI) crude oil futures gained further ground in the Asian session and traded tantalizingly close to the $63-a-barrel mark, while gold futures little changed just below the $3,400 level.

The U.S. dollar firmed against most major currency counterparts, while the 10-year Treasury yield slipped 1.2 basis points to 4.45% after it rose in the previous session. 

The Asian markets traded mostly higher on Tuesday.

On the economic front, the Labor Department is scheduled to release the Job Openings and Labor Turnover (JOLTS) report for April at 10 a.m. ET. Economists, on average, expect job openings to slip to 7.1 million from the previous month’s 7.2 million.

The Commerce Department is set to release its factory orders report at 10 a.m. ET.

Chicago Fed President Austan Goolsbee (12:45 p.m. ET), Fed Governor Lisa Ray (1 p.m. ET), and Dallas Fed President Lorie Logan (3:30 p.m. ET) are among the Federal Reserve speakers scheduled for the day. 

The earnings slate for the day includes Dollar General (DG), Donaldson (DCI), Nio (NIO), M Ollie’s Bargain Outlet (OLLI), Signer Jewelers (SIG), CrowdStrike (CRWD), Asana (ASAN), Hewlett-Packard Enterprises (HPE), and Yext (YEXT).

LPL Financial Chief Market Strategist Adam Turnquist said technical evidence suggests the recovery is real and not a “bull trap” or a “bear market” rally.

The strategist said the S&P 500 Index has reversed a short-term downtrend and continued to hold above its recent price gap above the 200-day moving average (DMA). 

“A close above the May highs (5,969) should open the door for a retest of the prior high at 6,144,” he added.

Turnquist said since the April 8 low, the percentage of S&P 500 stocks trading in some form of an uptrend has jumped from 29.4% to 60% last week. 

“For investors, this means dips above support should be used as buying opportunities,” he added.

After spending much of Monday’s morning session below the unchanged line amid tariff worries, stocks recovered in the afternoon. Traders largely overlooked the frictions between the U.S. and China regarding implementing the Geneva trade agreement struck in mid-May.

Among the major S&P 500 sector classes, all but industrials closed higher for the day, with energy and IT stocks leading the gains. 

On Monday, the Invesco QQQ Trust (QQQ) ETF and the SPDR S&P 500 ETF (SPY) rose 0.79% and 0.56%, respectively.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) added 0.20%, and the iShares Russell 2000 ETF (IWM) rose 0.31%.

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