Stock futures are pointing to a lower open for major indexes on Monday as shares in large-cap technology companies lose ground in premarket trading.
Futures tied to the Dow Jones Industrial Average and S&P 500 were both down 0.4%, while those linked to the Nasdaq 100 were off 0.5%. The major indexes surged on Friday, putting them into positive territory for the week, after a better-than-expected monthly jobs report reinforced the idea that U.S. economy is headed for a soft landing. The Dow finished the week at an all-time closing high, and the S&P 500 is just shy of a record of its own.
Mega-cap technology stocks were down across the board before the bell on Monday, led by declines for Apple (AAPL) and Amazon (AMZN), which were both down more than 1%. AI investor favorite Nvidia (NVDA), Microsoft (MSFT), Meta Platforms (META) and Alphabet (GOOGL) also lost ground.
The economic data calendar is light on Monday but picks up significantly later in the week with the release of closely watched inflation data and the latest reading on consumer sentiment. Investors will be watching the numbers closely for further confirmation that the economy is on sound footing, while also looking for clues about how aggressive the Federal Reserve will be as it cuts interest rates. The Fed cut its benchmark fed funds rate for the first time in four years last month.
Following the strong jobs repot on Friday, market expectations for the Fed to make deep cuts in the coming months fell significantly. Market participants now believe it’s likely the Fed will make two quarter-percentage-point cuts in the benchmark rate before the end of the year, according to fed fund futures trading data. Before the jobs report, markets were pricing in the likelihood that the central bank would announce a half-point cut at the next meeting in November, as well as a cut in December.
The yield on 10-year Treasurys, which is sensitive to expectations around where interest rates are headed, moved above 4% on Monday for the first time in two months.
Crude oil futures were up about 1.5%, extending a rally that picked up steam last week amid growing concerns about conflict in the Middle East possibly disrupting oil production.
Gold futures were up slightly at around $2,675, while bitcoin was little changed and trading near $63,000.
Major Indexes Poised to Open Lower Monday
46 minutes ago
Futures tied to the Dow Jones Industrial Average were down 0.4%.
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S&P 500 futures were also down 0.4%.
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Nasdaq 100 futures were down 0.5%.
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