US pre-open: Futures edge lower ahead of Apple event, inflation data
US stocks were set to slip on Tuesday morning, retreating after a more positive start to the week, as investors showed caution ahead of a pivotal product event for Apple and key inflation data later this week.
Meanwhile, markets will be starting to look ahead to a policy meeting at the European Central Bank on Thursday, followed by the Bank of England and Federal Reserve next week.
The Dow was down 0.1% in pre-market trade, while the S&P 500 and Nasdaq both fell 0.2%.
The US consumer price index is due out on Wednesday and expected to show that prices rose 0.5% in August after a 0.2% gain in July, though core inflation is expected to have held stable at 0.2% month-on-month.
According to the economic advisory committee of the American Bankers Association, the Federal Reserve's job in its latest rate-rising cycle is now over, with GDP growth expected to ease to just 1.2% next year, from 2% in 2023.
"Shifting rate expectations over recent weeks have added greater uncertainty for markets, and this rumour of an impending pause does help lift sentiment as market pricing adjusts accordingly," said Joshua Mahony from Scope Markets.
Tech stocks in focus
All eyes were on Apple ahead of its closely watched Wonderlust event on Tuesday amid reports of a possible launch of a new iPhone 15 and Apple Watch Series 9. There could be updates to the iPad and the VisionPro headset.
Tesla futures were retreating after a 10% jump on Monday following Morgan Stanley upgrade to 'overweight'. The bank said that Dojo, Tesla's custom supercomputing product that's been in the works for the past five years, could add "up to $500bn" to Tesla's enterprise value. It hiked its target price for the stock from $250 to $400.
Tech investors may also be treading water ahead of ARM's blockbuster listing on the NYSE on Wednesday. The UK chip group's $50bn+ IPO is already said to be 10 times oversubscribed.
WestRock was rising in pre-market trade on the news that it is to merge with paper and packaging peer Smurfit Kappa, creating a business with combined revenues of $34bn and a 20% market share in Europe and North America.