On Tuesday morning, U.S. stock futures were trending lower. This on the heels of a robust session yesterday that saw the S&P 500 rally almost 1.8% and the Nasdaq Composite climb 2.3%. The Dow Jones Industrial Average futures were down 4 points, or less than 0.01%, and the Nasdaq 100 futures fell 0.06%. This market movement comes as investors anticipate several key economic updates, including the Richmond Federal Reserve's manufacturing index for March, consumer confidence data, and February's new home sales figures.
These are the indicators that market analysts are most closely watching because they tell the story of what is really happening in today’s economic environment. Meanwhile, Mohamed El-Erian, Allianz chief economic advisor, noted that part of the driver for the recent market sell-off could be behind us.
"You've seen quite a de-leveraging among fast money. And you've also seen a shift of institutional to Europe. I think most of the de-leveraging is behind us. The shift to Europe isn't quite behind us, but the technical certainly are not as bad as they were a few weeks ago," said Mohamed El-Erian.
American Electric Power saw its shares drop 2% after announcing plans for a $2 billion secondary sale of common stock through Citigroup and Barclays. This decision could indicate the company’s efforts to plan ahead for more difficult capital raising conditions with tightening markets.
According to The Wall Street Journal and Bloomberg News, the White House is considering scaling back the upcoming tariffs. Beyond the specific action taken, this decision could have large ripple effects affecting overall trade dynamics and directing the broader capital markets sentiment.
On the advocacy front, trading platform eToro is on the move. They are in the process of completing an initial public offering, having filed with the Securities and Exchange Commission. Founded in 2007, eToro. ETNR Holdings intends to apply to list its Class A common shares on the Nasdaq Global Select Market under the ticker symbol “ETOR.” The firm gives its clients the freedom to trade across many asset classes. Those are things like stocks and exchange-traded funds and options, a major step in its trajectory of growth.
As the market digests these developments, investor focus shifts to new data releases. The Richmond Federal Reserve's manufacturing index for March will offer insights into the manufacturing sector's performance, while consumer confidence data will gauge consumer sentiment amid economic uncertainty. February's new home sales figures could influence market dynamics by providing a snapshot of the housing market's health.