Investing.com-- U.S. stock index futures drifted lower on Tuesday evening after a swathe of mixed official readings put markets on edge over the health of the U.S. economy, while technology shares remained out of favor.
Futures fell following a mostly negative session on Wall Street, where gains in Tesla and Oracle were a bright spot in an otherwise downward trend.
S&P 500 Futures fell 0.2% to 6,787.0 points by 19:17 ET (00:17 GMT). Nasdaq 100 Futures fell 0.2% to 25,088.25 points, while Dow Jones Futures fell 0.1% to 48,093.00 points.
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US economic uncertainty builds after mixed payrolls; CPI awaited
Nonfarm payrolls grew more than expected in November, data showed on Tuesday. But this was accompanied by an increase in the jobless rate to a four-year high, which underscored continued weakness in the labor market.
The rise in payrolls was also much smaller than a sharp decline seen in prior months.
Other readings also flagged some cooling in the U.S. economy. Purchasing managers index data for December showed growth in both manufacturing and services was lower than expected, while delayed retail sales data for October showed growth cooling from the prior month.
The economic data, coupled with recent comments from the Federal Reserve, spurred increased caution over the U.S. economy. The Fed’s resumption of Treasury buying activities also spurred questions over tight market liquidity conditions.
Focus is now on consumer price index inflation data for November, due on Thursday, for more cues on the world’s largest economy. Labor growth and cooling inflation are the Fed’s two biggest considerations for adjusting interest rates, with the central bank largely expected to keep rates on hold in January.
Wall St drifts lower; Tesla, Oracle offer some support
The S&P 500 and the Dow Jones Industrial Average ended lower on Tuesday amid heightened caution over the U.S. economy, which weighed on cyclical, non-technology sectors. Losses in energy stocks– which tracked oil prices sliding to five-year lows– also weighed.
The NASDAQ Composite ended slightly higher, aided by gains in Tesla and Oracle. Tesla Inc (NASDAQ:TSLA) closed at a record high amid increasing optimism over the company’s robotaxi ambitions, after CEO Elon Musk confirmed that the company was testing its robotaxis without a human safety monitor.
But Tesla fell as much as 1% in aftermarket trade, following reports that the company’s sales in the state of California faced a 30-day suspension over allegedly misleading customers on its self-driving and autopilot software.
Oracle Corp (NYSE:ORCL) rose 2%, recovering slightly from nearly a week of losses after the cloud company offered disappointing guidance on earnings and expenses. But broader tech shares, especially those with artificial intelligence exposure, remained mostly downbeat after suffering heavy losses through the past week.
Sentiment towards tech was battered by growing questions over an AI-fueled surge in valuations over the past two years. Investors were seen taking a heavy dose of profits in the sector through October and November.
