Futures slip, Goldman Sachs cuts recession chances - what's moving markets
Investing.com -- U.S. stock futures edge down following the Labor Day holiday, with traders trying to suss out the path ahead for price gains and the wider economy. Meanwhile, Goldman Sachs reduces the chances that America will slip into a recession over the next 12 months, pointing to recent labor and inflation data. Elsewhere, weak overseas demand weighs on activity in China's services sector.
1. Stock futures lower
U.S. stock futures inched lower on Tuesday, as investors attempt to parse out the health of the broader economy and gauge price pressures following the end-of-summer holiday.
At 05:18 ET (09:18 GMT), the Dow futures contract slipped by 46 points or 0.1%, S&P 500 futures edged down by 12 points or 0.3%, and Nasdaq 100 futures lost 65 points or 0.4%.
The main indices were mixed to end the previous trading week, with the benchmark S&P 500 and 30-stock Dow Jones Industrial Average posting gains and the Nasdaq Composite dipping marginally. However, on a weekly basis, all three finished in the green.
Data on Friday showed that the unemployment rate unexpectedly rose in August, while average hourly wage growth eased.
The figures bolstered expectations that the Federal Reserve would keep interest rates steady at its September meeting. Prior to the two-day gathering, more crucial economic releases — including fresh inflation numbers — are due out.
2. Goldman Sachs lowers chance of U.S. recession
Analysts at Goldman Sachs seem to be more persuaded that the U.S. economy will avoid a massive contraction in the near term despite a recent spike in borrowing costs.
The investment bank on Tuesday lowered the probability that the country would fall into a recession in the next 12 months to 15% from 20%, citing positive
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