Nasdaq, S&P, and Dow futures point lower to start August trading after a rally in July

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Stock market futures point to the downside to start the trading week and month of August after Wall Street watched a strong July performance.

S&P futures (SPX) -0.2%, Nasdaq 100 futures (NDX:IND) -0.2% and Dow futures (INDU) -0.1%.

Yields ticked slightly higher but appear relatively unchanged. The U.S. 10-year Treasury yield (US10Y) is up 1 basis points to 2.67%, while the U.S. 2-year Treasury yield (US2Y) has risen 1 basis point to 2.90%.

On an economic front S&P PMI Manufacturing data is set to hit the market at 9:45, with the consensus expecting to see 52.3, which would be slightly lower than the previous months 52.7 figure.

Also set to report shortly after the bell is Construction Spending data and ISM Manufacturing figures.

Investors turn the page after a strong July rally and look to continue the forward trend in August.

Deutsche Bank highlighted in an investor note that “July’s gains were led by a combination of factors, including the prospect of the Federal Reserve pivoting due to softening economic conditions and potential peaking in inflationary factors.”

The note continued with: “Concerns about growth slowing and some signs that inflation might be peaking meant that investors began to price in a less aggressive pace of monetary tightening from the Fed over the coming months. In fact, markets are pricing rate cuts now within the next six months.”

Among active stocks, shares of NIO have jumped as the Chinese EV maker saw 27% Y/Y growth as the firm delivered over 10K vehicles for the month of July.