Investing.com -- U.S. stock futures edged higher Tuesday, rebounding after a difficult start to the week as investors await the release of more economic data to provide clues about the health of the U.S. economy.
By 06:40 ET (10:40 GMT), the Dow Futures contract was up 20 points or 0.1%, S&P 500 Futures traded 10 points or 0.2% higher, and Nasdaq 100 Futures climbed 70 points or 0.5%.
The three main equity averages closed lower Monday, with the tech-heavy Nasdaq Composite leading the way, dropping nearly 1.2%. Yet, despite these losses, both the S&P 500 and NASDAQ Composite are still on pace to finish June more than 3% higher, while the Dow Jones Industrial Average is poised to gain nearly 2.5%.
Economic data dump due
These monthly gains came as the U.S. Federal Reserve paused rate hikes this month but indicated it could raise rates again this year depending on incoming economic data.
Friday’s release of May data on the personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, is seen as key towards guiding sentiment ahead of the July Fed meeting.
Ahead of that, Tuesday sees the release of the latest new home sales, building permits and durable goods orders.
More interest rate hikes likely globally
While the Fed paused its rate-hiking cycle in June, most major U.S. banks expect the U.S. central bank to deliver another 25-basis-point rate hike in July.
“Inflation is taking too long to get back to target,” Gita Gopinath, the International Monetary Fund’s deputy managing director said, as most of the world’s central banking elite assembled in the Portuguese hillside resort of Sintra.
“This means that central banks, including the ECB, must remain committed to fighting inflation despite risks of weaker economic growth.”
European Central Bank President Christine Lagarde agreed, saying the region’s central bank probably won’t be able to declare the end of its historic interest-rate hiking cycle anytime soon.
Lordstown files for bankruptcy, sues Foxconn
In corporate news, earnings are due Tuesday from drugstore retailer Walgreens Boots Alliance (NASDAQ:WBA) and investment bank Jefferies Financial Group (NYSE:JEF).
Additionally, Lordstown Motors (NASDAQ:RIDE) will be in the spotlight after the U.S. electric truck manufacturer filed for bankruptcy protection earlier Tuesday while simultaneously announcing legal action against Taiwanese company Foxconn (TW:2354) over its alleged failure to invest up to $170 million.
Oil retreats; growth worries remain
Crude prices retreated Tuesday, as traders fretted that continued monetary tightening would hit economic activity as the year progresses, weighing on the demand for oil.
By 05:40 ET, U.S. crude futures were 1% lower at $68.94 a barrel, while the Brent contract fell 1% to $73.64 per barrel.
The oil markets had started the day on a more positive note after Chinese Premier Li Qiang said his country, the largest importer of crude in the world, will reach the annual economic growth target of around 5%, promising more stimulus to achieve this goal.
U.S. oil inventory data from the American Petroleum Institute industry group is set to be released later Tuesday, followed by the official data from the Energy Information Administration the next day.
Additionally, gold futures traded flat at $1,933.60/oz, while EUR/USD traded 0.4% higher at 1.0943.
(Oliver Gray contributed to this item.)