U.S. stock futures fell on Tuesday, as investors returned from the long holiday weekend to more Brexit-fueled uncertainty and opted for caution ahead of the closely watched U.S. jobs report on Friday.
Futures for the Dow Jones Industrial Average dropped 78 points, or 0.4%, to 17,788, while those for the S&P 500 index lost 10.05 points, or 0.5%, to 2,086.50. Futures for the Nasdaq-100 index fell 21.25 points, or 0.5%, to 4,412.
U.S. markets were closed for normal trade on Monday for Independence Day, but stock futures still traded and logged small gains. Those moves came after both the Dow average and S&P 500 index last week scored their best week in 2016, clawing back some of the steep losses logged in the wake of the U.K.'s vote to leave the European Union.
Better-than-expected U.S. data and hopes that central banks will step up to calm markets were seen as helping boost stocks last week.
"Stock markets have snapped a 5-day liquidity driven rally [on Tuesday] as investors began to look beyond expectations of more cheap money to the reason why central banks may be forced to ease further," analysts at Rabobank said in a note. "Arguably it was inevitable that the reality of a bleaker economic outlook would begin to set in. It may now only be a matter of time before investors once again begin to wonder whether the central banks really have the ammunition to counter the headwinds that face the global economy," they added.
The Bank of England is expected to cut rates from an already record low of 0.5% when it meets next week. BOE Governor Mark Carney said during a Tuesday press conference after the bank's Financial Stability Report came out that it is important any monetary policy action focuses on the domestic economy. Carney also said the risks in the aftermath of the vote have "begun to crystallize.". The renewed Brexit jitters on Tuesday sent waves through the currency market. The pound dropped to a fresh 31-year low against the dollar at $1.3114, but trimmed losses to $1.3182 as Carney spoke.