- US stock futures fell on Monday as investors trimmed their wagers after a bumper week.
- S&P, Nasdaq, and Dow futures were all lower, and the US dollar and 10-year Treasury were almost flat.
- The stock prices of three Japanese trading houses jumped after Warren Buffett shouted them out.
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US stocks were set to open in the red on Monday as investors pared their bets after winning big last week.
Futures underlying the S&P 500, Nasdaq 100, and Dow Jones Industrial Average were all down by about 0.2% shortly after 4.30 a.m. ET.
The benchmark S&P advanced by 2% last week to close at a record 5,089 points on Friday, largely fueled by Nvidia beating sky-high expectations with its latest earnings report.
The US Dollar Index, which tracks the dollar against a basket of other currencies, was almost flat at 104 points. It was a similar story for the key 10-year Treasury note, which has climbed from below 4% at the start of this year to north of 4.2% over concerns that stubborn inflation could mean interest rates stay higher for longer than expected.
“US and EU equity futures dipped overnight with Asian shares stalling near seven-month highs as investors turn their attention from Nvidia and the AI craze to this week’s inflation data from the United States, Japan and Europe that will help refine expectations for future rate moves,” Saxo Bank’s strategy team said in a morning note.
Workday, Zoom, and Domino’s Pizza are all due to release earnings later in the day. Investors are looking forward to fresh figures for new home sales on Monday, and updates later this week for inflation, unemployment, manufacturing, and house prices.
The “Buffett Effect” was also on display with the share prices of Mitsui, Mitsubishi, and Marubeni all gaining 2%.
In his annual letter to Berkshire Hathaway shareholders on Saturday, Warren Buffett praised the Japanese trading houses — in which he holds about 9% stakes — for treating their stockholders in a “much superior” manner to the standard in the US.
He highlighted their relatively modest executive pay, focus on reinvesting profits and buying back stock instead of paying tax-inefficient dividends, and reluctance to issue shares.
