Stock futures are trading nearly flat on Monday night as investors tried to shake off the previous session’s selloff.
Dow Jones Industrial Average futures added 52 points, or 0.1%. S&P 500 and Nasdaq-100 futures both gained 0.1%.
Monday’s close marked a negative start to the trading week. The Nasdaq Composite led the charge lower, shedding 1.93% to end the session at 11,239.94. The S&P 500 fell 1.79% to end at 3,998.84, followed by the Dow Jones by 1.4%, or 482.78 points, slipping to 33,947.10.
November ISM services better than expected the data, which sees the level of manufacturers’ buying as an indicator of the health of the broader economy, weighed on stocks. Indeed, investors are increasingly wary that the Federal Reserve will have to raise interest rates for longer than expected in order to aim to reduce inflation.
The version aligns with the payslip last weekend pointing to a resilient economy. But those items add up to what Dan Greenhaus, chief strategist at Solus Alternative Asset Management, called a more “mixed” data set that gives investors mixed signals about the state of the economy.
Market watchers are still widely expecting a 50 basis point interest rate hike at the Fed’s December meeting. But Greenhaus said investors disagree on how long the central bank’s interest rate hike campaign will last, especially given recent data showing the economy remains strong in some regions.
“From a market perspective, I think you’re still struggling with the overshoot days from the 75 basis point bull days,” Greenhaus said on CNBC’s “Closing Bell: Overtime.” “And now you’re really focusing on, ‘How far do we really have to go to bring all inflation down?'”
Investors will await Tuesday morning’s international trade data for insight into the strength of the U.S. and global economy. Later today, they will be watching post-bell earnings reports from Smith & Wesson and Stitch Fix.