U.S. stock futures dropped on Monday following Friday’s sharp rebound. Futures of major benchmark indices were lower.
The decline follows a positive close across indices in Asia, with the Nikkei 225 breaking the 57,000-point barrier for the first time, fueled by Prime Minister Sanae Takaichi‘s landslide election victory and a high-profile endorsement from President Donald Trump.
Meanwhile, the 10-year Treasury bond yielded 4.22%, and the two-year bond was at 3.50%. The CME Group’s FedWatch tool‘s projections show markets pricing an 84.2% likelihood of the Federal Reserve leaving the current interest rates unchanged in March.
| Index | Performance (+/-) |
| Dow Jones | -0.12% |
| S&P 500 | -0.37% |
| Nasdaq 100 | -0.63% |
| Russell 2000 | -0.33% |
Stocks In Focus
Strategy
- MSTR maintains a weaker price trend over the short, medium, and long terms with a poor value ranking, as per Benzinga’s Edge Stock Rankings.
STMicroelectronics
- STM maintains a stronger price trend over the short, medium, and long terms, with a poor quality ranking, as per Benzinga’s Edge Stock Rankings.
FedEx
- FedEx Corp. (NYSE:FDX) rose 0.47% after a consortium led by it and Advent announced plans buy InPost for €7.8 billion or $9.254 billion.
- Benzinga’s Edge Stock Rankings indicate that FDX maintains a stronger price trend over the short, medium, and long terms, with a strong value ranking.
Kroger
- Benzinga’s Edge Stock Rankings indicate that KR maintains a strong price trend over the long, medium, and short terms, with a solid quality ranking.
ON Semiconductor
- ON Semiconductor Corp. (NASDAQ:ON) fell 1.38% as analysts expect it to post quarterly earnings at 62 cents per share on revenue of $1.54 billion after the closing bell.
- ON maintains a stronger price trend over the short, medium, and long terms, with a moderate value ranking, as per Benzinga’s Edge Stock Rankings.
Cues From Last Session
Industrials, energy, and information technology stocks led the S&P 500’s gains on Friday, though consumer discretionary and communication services sectors closed lower against the trend.
Insights From Analysts
After the Dow Jones Industrial Average closed above 50,000 for the first time on Friday, financial experts noted that cooling inflation and technical rebounds were primary drivers of the 1,200-point rally.
Jeffrey Roach, Chief Economist for LPL Financial, noted that median 1-year inflation expectations hit their lowest levels since early 2025. He said, “We think the Fed will cut rates later this year, which will grease the skids for more market appreciation,” Roach said.
Jamie Cox, Managing Partner for Harris Financial Group, noted that the rally was a reaction to corporate strength rather than political headlines. “The Warshout is over. Markets realized that outsized spending on Capex by large tech firms and a strong economy are bullish after all,” Cox stated.
Adam Turnquist, Chief Technical Strategist for LPL Financial, observed that while the Dow cleared a “major psychological barrier,” the broader market still faces resistance.
“We expect the S&P 500 may have difficulty clearing the 7,000-point milestone without stronger contributions from the tech sector—especially from software,” Turnquist added.
Mohamed A. El-Erian, Allianz Chief Economic Adviser, warned that while a “total ‘disorderly process’ was averted by the persistent ‘Buy the Dip’ (BTD) mentality,” upcoming CPI data and labor market softening remain critical factors for the year ahead.
Upcoming Economic Data
Here’s what investors will be keeping an eye on this week.
Commodities, Gold, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 0.11% to hover around $63.62 per barrel.
Gold Spot US Dollar rose 0.73% to hover around $4,997.47 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.29% lower at the 97.3470 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.94% lower at $68,652.67 per coin.
Asian markets closed higher on Monday, as India’s Nifty 50, Japan’s Nikkei 225, Hong Kong’s Hang Seng, China’s CSI 300, Australia’s ASX 200, and South Korea’s Kospi indices rose. European markets were also higher in early trade.
Photo: Shutterstock
