U.S. stock futures were lower in premarket trading on Monday as Treasury yields continued to move higher amid doubts about the Fed’s next move on interest rates.
Futures contracts connected to the Dow Jones Industrial Average were off about 0.2% in early trading, while S&P 500 futures and Nasdaq 100 futures were down 0.8% and 1.1%, respectively.
Stocks tumbled on Friday to cap off a second consecutive week of losses after a surprisingly strong December jobs report raised concerns among investors that the Federal Reserve may not cut interest rates at all this year.
Risk assets and growth stocks fell on Monday. Chip giant Nvidia (NVDA) and EV maker Tesla (TSLA) were both off about 3% in premarket trading. Other chip stocks and AI beneficiaries were also lower. Cryptocurrencies fell sharply, with the price of Bitcoin (BTCUSD) falling below $91,000 and Ether (ETHUSD) down to about $3,000.
Apple (AAPL) shares slipped after a report from Counterpoint Research saying iPhone sales fell in the fourth quarter, shrinking the tech giant’s share of the global smartphone market.
-Treasury yields were marginally higher, with the 10-year yield at 7.78% after jumping to 4.8% when trading resumed in the early Monday morning.
Oil futures rose to about $78 a barrel on Monday morning after surging Friday. Gold futures slumped about 1% to trade around $2,690 an ounce.
The big economic data this week will be Wednesday’s Consumer Price Index. The U.S. economy has proved surprisingly resilient to higher interest rates over the past couple of years, forcing the Fed to raise rates higher and keep them elevated for longer than many market participants had expected. Last week’s jobs data was yet another sign of the economy’s strength. Economists and Wall Street will be watching Wednesday’s report—as well as Thursday’s wholesale inflation data—closely for any evidence that progress on inflation has stalled or begun to reverse.
Fourth-quarter earnings season will kick off in earnest this week with reports from some of America’s largest banks, including JPMorgan Chase (JPM), Wells Fargo (WFC), and Goldman Sachs (GS), on Wednesday. Chip manufacturing giant Taiwan Semiconductor Manufacturing Co. (TSM) and healthcare giant UnitedHealth Group (UNH) will also report this week.
