Following the sell-off seen over the two previous sessions, 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 Dow futures down by just 9 points.
Traders may be reluctant to make significant moves as they keep a close eye on developments regarding the tensions between Ukraine and Russia.
President Joe Biden spoke with Russian President Vladimir Putin over the weekend, with a senior administration official describing the call as “professional and substantive” but noting there was “no fundamental change in the dynamic that has been unfolding now for several weeks.”
“We believe that we have put ideas on the table that would be in our and our allies’ interest to pursue, that would enhance European security, and that would also address some of Russia’s stated concerns,” the official said in a call with reporters.
The official added, “But it remains unclear whether Russia is interested in pursuing its goals diplomatically as opposed to through the use of force.”
Russian Foreign Minister Sergey Lavrov told Putin in remarks aired on Russian state television on Monday that “there is always a chance” that diplomacy could still work.
A lack of major U.S. economic data may also keep traders on the sidelines ahead of the release of reports on producer prices, retail sales, industrial production and housing starts in the coming days.
The minutes of the Federal Reserve’s latest monetary policy meeting may also attract attention later this week, as traders look for additional clues about the outlook for interest rates.
Stocks moved sharply lower over the course of the trading day on Friday, extending the sell-off seen in the previous session. The major averages fluctuated early in the session but showed a substantial move to the downside as the day progressed.
The major averages all posted steep losses on the day, with the tech-heavy Nasdaq leading the way lower. While the Nasdaq plummeted 394.49 points or 2.8 percent to 13,791.15, the Dow slumped 503.53 points or 1.4 percent to 34,738.06 and the S&P 500 tumbled 85.44 points or 1.9 percent to 4,418.64.
With the sell-off offsetting the strong upward move seen on Tuesday and Wednesday, the major averages posted notable losses for the week. The Dow slid by 1 percent, while the Nasdaq and the S&P 500 dove by 2.2 percent and 1.8 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index plunged by 2.2 percent, while China’s Shanghai Composite Index slumped by 1 percent.
The major European markets have also moved to the downside on the day. While the U.K.’s FTSE 100 Index has tumbled by 1.4 percent, the German DAX Index is down by 2 percent and the French CAC 40 Index is down by 2.5 percent.
In commodities trading, crude oil futures are falling $0.45 to $92.65 a barrel after soaring $3.22 to $93.10 a barrel last Friday. Meanwhile, after rising $4.70 to $1,842.10 an ounce in the previous session, gold futures are climbing $16.20 to $1,858.30 an ounce.
On the currency front, the U.S. dollar is trading at 115.47 yen versus the 115.42 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1322 compared to last Friday’s $1.1350.
Business News
Futures Pointing To Roughly Flat Open On Wall Street
2022-02-14 13:51:50
