REUTERS: U.S. stock index futures dropped on Tuesday, as worries about the scale of consensus at the Federal Reserve in favor of deeper cuts in interest rates ate into the positive sentiment that drove indexes to record highs last week.
"The rate cut, which nearly everyone expects tomorrow, is not so much based on current data as it is being cast as an insurance policy that is cheap to take, so the argument goes, because price pressures are low," said Marc C. Chandler, Chief Market Strategist at Bannockburn Global Forex. Corporate earnings so far have been robust with nearly half of all S&P 500 companies that have posted second-quarter earnings, 76.1per cent have beaten bottom line estimates, according to Refinitiv data.
At 7:19 a.m. ET, Dow e-minis were down 58 points, or 0.21per cent. S&P 500 e-minis were down 10 points, or 0.33per cent and Nasdaq 100 e-minis were down 45.25 points, or 0.57per cent.