Investing.com– U.S. stock index futures mostly edged higher Tuesday, bouncing after widespread selling in technology shares at the start of the week.
At 06:30 ET (10:30 GMT), fell 25 points, or 0.1%, while climbed 12 points, or 0.2%, while rose 95 points, or 0.5%.
Wall Street recovers after Nvidia (NASDAQ:) losses
The tech sector is set to show a recovery Tuesday after being hit hard during the previous sessioj, with the dropping 1.1%, its worst day since April, as investors collected profits following a stellar rally over the past few months.
Chipmaking stocks such as Broadcom (NASDAQ:), U.S. shares of Taiwan Semiconductor Manufacturing (NYSE:) and Qualcomm Incorporated (NASDAQ:) tumbled on Monday, but Nvidia bore a brunt of the selling, falling 6.7% and tumbling for a third straight session after it briefly became the most valuable company on Wall Street last week.
Still, Nvidia is up about 138% so far this year, with analysts remaining positive on the stock in the face of a massive artificial intelligence-driven demand boom.
PCE inflation awaited
Focus this week was squarely on data, which is the Federal Reserve’s preferred inflation gauge.
The reading is due on Friday and is expected to show some mild cooling in inflation, but it is also expected to remain well above the Fed’s 2% annual target range.
UBS expects the Federal Reserve to begin cutting interest rates in September.
While there has been unusual volatility in economic data since the start of the pandemic, certain trends now appear to be well established, UBS said.
The labor market, which was severely overheated two years ago, has returned to near pre-pandemic conditions, supported by a strong increase in labor supply.
Moreover, retail sales and inflation are also showing signs of moderation.
In May, core CPI, which excludes food and energy prices, rose by just 0.16% month-over-month, marking the smallest increase since August 2021.
Although the year-over-year core inflation rate is trending lower, it remains considerably above its pre-pandemic levels.
“We maintain our base case that the Fed will be in a position to cut rates in September as it receives softer data on growth, the labor market, and inflation,” they said. “We see risks as skewed toward the Fed staying on hold for longer than in our base case, but we still see additional rate hikes as unlikely.”
Later Tuesday, for June, the , and home price data are scheduled for release.
FedEx earnings due
In the corporate sector, quarterly earnings are due from FedEx (NYSE:) and Carnival (NYSE:).
Among major premarket movers, footwear maker Birkenstock (NYSE:) slid 5% after it said a top shareholder plans to offload 14 million shares in a public offering.
SolarEdge Technologies (NASDAQ:) fell 15% after it announced plans to offer $300 million in new debt.
Crude lower ahead of API inventories
Crude prices drifted lower Tuesday ahead of the release of the latest information regarding U.S. crude inventories during the summer driving season.
By 07:10 ET, the futures (WTI) traded 0.5% lower at $81.25 per barrel, while the Brent contract dropped 0.4% to $84.78 per barrel.
Both benchmarks rose about 3% last week, marking two straight weeks of gains, boosted by increased demand as the U.S., the world’s biggest oil consumer, enters the peak summer consumption period.
The is set to release its forecast of U.S. crude oil stockpiles later in the session, ahead of the on Wednesday, and stocks are expected to have declined in the week to June 21.
(Ambar Warrick contributed to this article.)
