US stock futures sink as economic jitters persist, tech rout continues

Investing.com– U.S. stock index futures fell in evening deals on Sunday amid persistent concerns over an economic slowdown and technology stocks continued to grapple with extended profit-taking. S&P 500 Futures fell 0.9% to 5,329.0 points, while Nasdaq 100 Futures fell 1.4% to 18,302.0 points by 19:28 ET (23:28 GMT). Dow Jones Futures fell 0.5% to 39,680.0 points.

Slowdown fears batter Wall Street

Losses in Wall Street futures came after U.S. stocks were walloped by fears of an economic slowdown last week. A string of weak readings- on business activity and the labor market- ramped up concerns that the Federal Reserve had kept interest rates high for too long, and that chances of a soft landing for the economy were fading. This notion came to a head on Friday after nonfarm payrolls data for July missed expectations by a wide margin, indicating a substantial cooling in the labor market. While the data did drive up hopes for more interest rate cuts by the Fed, it inspired little appetite for risk-driven assets. Selling also remained largely biased towards technology stocks, with the tech-heavy NASDAQ Composite falling 2.4% to 16,776.16 points on Friday. The index was now down more than 10% from a record high hit earlier in the year. Losses in tech saw the S&P 500 sink 1.8% to 5,346.56 points, while the Dow Jones Industrial Average, which has relatively less tech weightage than its peers, fell 1.5% to 39,737.26 points.

Economic cues, more earnings on tap

After a Fed meeting last week, where the central bank kept rates unchanged but signaled a September cut, markets will be watching for more cues from a string of Fed speakers through this week. Some economic data is also on tap this week, with non-manufacturing purchasing managers index data from the Institute of Supply Management due on Monday. In company earnings, industrial bellwether Caterpillar Inc (NYSE:CAT) and ride sharing major Uber Technologies Inc (NYSE:UBER) are due on Tuesday. Super Micro Computer Inc (NASDAQ:SMCI)- which saw a major valuation spike on hype over artificial intelligence- is also due on Tuesday, while media majors Walt Disney Company (NYSE:DIS) and Warner Bros Discovery Inc (NASDAQ:WBD) are due on Wednesday. Related Articles US stock futures sink as economic jitters persist, tech rout continues Earnings call: ZimVie maintains guidance amid Q2 revenue of $117 million Earnings call: Frontdoor boasts record margins and robust Q2 2024 results

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