Dow Jones set to open lower on Tuesday following blockbuster run
Futures data suggests US markets will open lower on Tuesday, 9 June.
Dow set to open lower
The Dow Jones Industrial Average (DJIA) capped off a blockbuster string of bullish trading sessions on Monday, with the index rising a further 461 points or 1.70% to finish out Monday at the 27,572 point level.
The S&P 500 and the Nasdaq Composite have also traded positively over the last week, with the tech-heavy Nasdaq hitting an all-time high on Monday.
An improving economic outlook
The main catalyst behind Friday and Monday’s run-up looks to be better-than-expected jobs data, which saw the US unemployment rate drop to 13.3% – as well as increasing optimism around the prospect of a rapid US economic recovery.
Looking at the specifics behind Friday’s economic data release, IG Market Analyst Kyle Rodda said:
‘The Non-Farm Payrolls data came in far stronger than expected, revealing that the US economy added approximately 2.5 million jobs in May, driving the US unemployment rate down to 13.3 per cent. Economists’ estimates were for the US economy to have lost -7.75 million jobs in the month, with the unemployment rising to 19.4 per cent.’
Mr Rodda went on to say that:
‘While questions about data collection and other measurement quirks have been raised as potentially reasons for the huge surprise, the markets have taken it as a sign that the US economy is in a far better position than previously imagined.’
In step with this bolstered sentiment shift, on Monday the best performing Dow constituents were Boeing (+12.20%), Dow (+4.39%) and Walgreens Boots Alliance (+3.68%); while the worst performing US equities were Intel, UnitedHealth and Johnson & Johnson.
Ultimately, though the Dow has registered gains during the last six trading sessions – futures markets suggests that the US benchmark will break that winning streak during the open on Tuesday. According to IG data, as of 12:35am (EDT), Dow Jones futures are trading 42 points or 0.16% lower.
Elsewhere, futures markets are also suggesting that the S&P 500 index and the Nasdaq Composite will open lower on Tuesday.
Events for investors to watch out for
Looking forward, Core CPI and Consumer price index data for May will be released on Wednesday, initial jobless claims for the week ending June 6 will be released on Thursday, and Consumer sentiment index data (June) will be released on Friday.
How to trade stocks after hours with IG
After-hours trading enables you to take a position on key US stocks – such as Apple, Netflix, Cisco and Tesla – outside normal trading hours.
IG offers after-hours trading on over 70 popular stocks. So, while most AU traders will only have access during the US stock market’s main window of 23.30 to 06.00 AEST, IG’s extended hours on All Session US shares mean you’ll have access for much longer.
- CFDs on All Session US shares 18.00 to 10.00 Monday to Thursday, and 18.00 Friday to 07.00 Saturday AEST
- Share trading on All Session US shares 21.00 to 07:30 Monday to Thursday, and 21.00 on Friday to 07.00 Saturday AEST
To get started today click here to create a live IG Trading Account now.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
