Stocks are likely to move to the downside in early trading on Monday, extending the steep drop seen last Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.6 percent.
Continued weakness in the tech sector may weigh on Wall Street amid a slump by shares of Nvidia (NVDA), which are tumbling by 3.0 percent in pre-market trading.
Ongoing concerns about the outlook for interest rates are also likely to generate selling pressure following last Friday’s stronger-than-expected monthly jobs report.
Interest rate worries have recently contributed to a surge by bond yields, with the yield on the benchmark ten-year note reaching its highest levels in over a year.
In the coming days, reports on consumer and producer price inflation may provide further insight into the outlook for rates.
Reports on weekly jobless claims, retail sales and industrial production are also likely to attract attention later in the week.
Earnings season also starts to pick up steam this week, as financial giants Citigroup (C), Goldman Sachs (GS), JPMorgan (JPM) and Wells Fargo (WFC) are due to report their quarterly results.
Stocks tumbled on Friday due to heavy selling across the board as buoyant non-farm payroll data raised concerns that the Federal Reserve will likely hold interest rates at current levels or slow down the pace of reductions. Rising bond yields hurt as well.
The major averages all closed sharply lower. The Dow settled with a loss of 696.75 points or 1.6 percent, at 41,938.45. The S&P 500 closed down 91.21 points or 1.5 percent, at 5,827.04, while the Nasdaq ended lower by 317.25 points or 1.6 percent, at 19,161.62.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday, with the Japanese markets closed for a holiday. China’s Shanghai Composite Index dipped by 0.3 percent, while Hong Kong’s Hang Seng Index slumped by 1.0 percent.
The major European markets have also moved to the downside on the day. While the U.K.’s FTSE 100 Index is down by 0.4 percent, the French CAC 40 Index and the German DAX Index are both down by 0.5 percent.
In commodities trading, crude oil futures are jumping $1.28 to $77.85 a barrel after soaring $2.65 to $76.57 a barrel last Friday. Meanwhile, after surging $24.20 to $2,715 an ounce in the previous session, gold futures are tumbling $27.60 to $2,687.40 an ounce.
On the currency front, the U.S. dollar is trading at 157.05 yen versus the 157.73 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0214 compared to last Friday’s $1.0244.
Business News
U.S. Stocks May See Further Downside In Early Trading
2025-01-13 13:53:22
