Following the sell-off seen last Friday, stocks may show a lack of direction in early trading on Monday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures nearly unchanged.
Traders may take a step back to assess the recent volatility on Wall Street, which saw stocks rally to record highs on the heels of President-elect Donald Trump’s decisive victory before pulling back sharply last week.
Concerns about the outlook for interest rates weigh on the markets last week along with worries about the impact of Trump’s proposed policies and cabinet nominees.
Investors may also be reluctant to make significant moves ahead of the release of quarterly results from AI darling Nvidia (NVDA).
Nvidia, which has recently been a driver of the markets, is scheduled to release its fiscal third quarter results after the close of trading on Wednesday.
The economic calendar is also relatively quiet this week compared to last week, although reports on housing starts, existing home sales and weekly jobless claims may still attract attention.
Shortly after the start of trading, the National Association of Home Builders is scheduled to release its report on homebuilder confidence in the month of November. The housing market index is expected to inch up to 44 in November after rising to 43 in October.
After coming under pressure late in Thursday’s session, stocks showed a more substantial move to the downside during trading on Friday. The major averages all moved sharply lower on the day, pulling back well off Monday’s record closing highs.
The major averages climbed off their worst levels in late-day trading but remained firmly negative. The tech-heavy Nasdaq led the way lower, plunging 427.53 points or 2.2 percent to 18,680.12.
The S&P 500 also tumbled 78.55 points or 1.3 percent to 5,870.62, while the narrower Dow slid 305.87 points or 0.7 percent to 43,444.99.
With the steep drop on the day, the major averages also moved significantly lower for the week. The Nasdaq dove by 3.2 percent, the S&P 500 tumbled by 2.1 percent and the Dow slumped by 1.2 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index slumped by 1.1 percent, while Hong Kong’s Hang Seng Index advanced by 0.8 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.’s FTSE 100 Index is just below the unchanged line, the French CAC 40 Index is down by 0.4 percent and the German DAX Index is down by 0.5 percent.
In commodities trading, crude oil futures are climbing $0.51 to $67.53 a barrel after tumbling $1.68 to $67.02 a barrel last Friday. Meanwhile, after edging down $2.80 to $2,570.10 an ounce in the previous session, gold futures are surging $36.50 to $2,606.60 an ounce.
On the currency front, the U.S. dollar is trading at 154.91 yen versus the 154.30 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0560 compared to last Friday’s $1.0540.
Business News
Futures Pointing To Roughly Flat Open On Wall Street
2024-11-18 13:56:06
