S&P 500 futures sat near flat on Tuesday, the first trading day of October and the fourth quarter, after a surprisingly strong September performance. S&P 500 futures were down just 0.1%, while their Nasdaq-100 counterparts gained 0.1%. Futures tied to the Dow Jones Industrial Average ticked down 106 points, or 0.3%. The S&P 500 and the Dow notched closing records in the previous session after Federal Reserve Chair Jerome Powell said the central bank is “not on any preset course” when it comes to the next steps for rate policy. He said to expect two more cuts this year — that is, a quarter percentage point each — if the economy performs as anticipated. September is typically the worst month of the year for stocks, but this time it broke with past trends. All three major averages posted monthly gains, and it was the first positive September for the S&P 500 since 2019. The S&P 500, Dow and Nasdaq Composite also ended the third quarter in positive territory. The Fed’s move to cut interest rates by a half-point at its latest meeting bolstered stocks’ performance as of late. Investors will now look to September’s nonfarm payrolls report on Friday, which will serve as the next catalyst for the major averages. “The risk here is likely to the downside,” said Dave Sekera, chief U.S. market strategist at Morningstar. “With the Fed embarking on a monetary easing policy of a 50-basis-point cut instead of the typical 25-basis-point cut, the question really is, ‘Is the Fed seeing more softness in jobs and unemployment than what the market is expecting?’” Traders were also monitoring a strike by members of the International Longshoremen’s Association on the East and Gulf Coasts. While consumers may not feel the pinch immediately, the stoppage could cost the U.S. economy hundreds of millions of dollars. On the economic data front, the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey for August is due Tuesday morning. The S&P Global U.S. Manufacturing Purchasing Managers’ Index and the ISM Manufacturing PMI readings are also slated for release. U.S. Treasury yields were lower on Tuesday as investors looked ahead to fresh economic data and weighed comments from Federal Reserve Chairman Jerome Powell. The yield on the 10-year Treasury slid more than 6 basis points to 3.737%. The 2-year Treasury yield sat 2 basis points lower at 3.631%. Asia-Pacific markets closed mixed on Tuesday, after Federal Reserve Chair Jerome Powell indicated the recent outsized cuts enacted by the U.S. central bank should not be interpreted as a sign that future moves will be as aggressive. Some Asian markets are closed for a public holiday Tuesday, namely, South Korea, Hong Kong and mainland China. Mainland China will be closed for the rest of the week, due to the Golden Week holiday. Japan’s Nikkei 225 rebounded 1.93% to close at 38,651.97, after suffering a 4.8% fall on Monday, while the Topix gained 1.69% and closed at 2,690.78 on Tuesday. Australia’s S&P/ASX 200 slipped 0.74% to end at 8,208.9, retreating from an all-time high. U.S. crude oil prices drifted lower Tuesday as the risk of rising supply from OPEC+ overshadows a dramatic escalation of the war in the Middle East. Israel has dispatched ground forces into southern Lebanon after pounding the Iran-backed militia Hezbollah with airstrikes for days, eliminating much of the group’s leadership. “We have two wars going on at the moment, we’ve had a massive racheting up of tensions in the Middle East and yet oil to date has not been affected by either conflict in a material way,” Helima Croft, head of global commodity strategy at RBC Capital Markets, told CNBC’s “Money Movers.” For now, traders remain focused on weak demand in China and the prospect of OPEC+ producing more oil starting in December, Croft said. West Texas Intermediate November contract: $67.33 per barrel, down 85 cents, or 1.25%. Year to date, U.S. crude oil has fallen 6%. Brent January contract: $70.58 per barrel, down 88 cents, or 0.88%. Year to date, the global benchmark has dropped more than 8%. Gold prices rose on Tuesday on safe-haven demand due to Middle-East tensions and lower U.S. bond yields, although the metal hovered below recent record highs after the Federal Reserve chief signaled smaller rate cuts in future. Spot gold was up 0.5% at $2,647.01 per ounce, as of 0913 GMT, after hitting an all-time high of $2,685.42 last Thursday. U.S. gold futures edged 0.3% higher to $2,668.30. The benchmark U.S. 10-year yield slipped on Tuesday, making non-yielding bullion more attractive for investors.