Stock Market News: Dow Set to Open Down

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U.S. stock futures were slipping early Tuesday after closing at new records to start the week.

Dow Jones Industrial Average futures were down 146 points, or 0.4%. Contracts tied to the S&P 500 were also off 0.3%, as were those on the Nasdaq Composite. The S&P and Nasdaq both finished at record highs on Monday, while the Dow also gained.

Traders are now focused on Wednesday for more clues about the U.S. economic outlook. Inflation data will be released in the morning and the Federal Reserve announces an interest-rate decision in the afternoon. No one is expecting a move on rates now, but investors are still hoping for one or two cuts later this year if the Fed becomes confident that price gains are under control.

“Markets are all but certain that there won’t be any rate cut this week, and real questions are being asked about whether the Fed will act before the year’s up,” said Matt Britzman, an equity analyst at Hargreaves Lansdown.

Traders are more or less evenly split on whether the Fed will deliver a cut in September, according to the CME FedWatch tool. Most still see one or two quarter-point moves by the end of the year.

The yield on the benchmark 10-year Treasury note stood at 4.451% early Tuesday, down slightly from yesterday. The two year yield was at 4.878%.