US stocks were set for losses on Tuesday as healthcare insurers tumbled and investors grappled with the possibility of a delayed interest rate cut. Futures on the Dow Jones Industrial Average slipped 0.6%, while S&P 500 futures shed 0.4% and Nasdaq 100 futures fell 0.5%.
The yield on the benchmark 10-year Treasury rose to around 4.38%, its highest level of 2024, as US bonds continued to struggle. This comes after a lackluster start to the second quarter following a string of record highs in the first months of the year.
Investors are closely watching for updates on job openings data and commentary from Fed officials for clues on the timing of potential rate cuts. A surprise decision by US regulators not to boost payments for private Medicare plans as expected led to a pullback in health insurer stocks, with Humana shares falling about 9% and CVS shedding almost 6%.
In other news, Tesla stock stumbled in pre-market trading after the company delivered fewer cars than expected in the first quarter. Consumer stocks are also in focus as gas prices rise, potentially impacting consumer spending. Oil prices hitting $85 a barrel have led to a five-month high, with gas prices up 16 cents from a month ago.
Overall, the market remains uncertain as investors navigate various economic indicators and news developments that could impact stock performance in the coming days.
