As Treasury yields increased and traders anticipated the announcement of corporate earnings from major tech companies, stock futures declined on Monday.
The Dow Jones Industrial Average futures experienced a 227-point, or 0.7%, decline. Futures for the S&P 500 and Nasdaq 100 declined by 0.8% and 0.9%, respectively.
The important 5% milestone was once again breached by the benchmark 10-year Treasury note rate, which increased by around 9 basis points. Both the 2-year note and the 30-year bond’s yield increased.
The action is taken as market participants predict what the Federal Reserve’s upcoming monetary policy decision will be. Last week, Fed Chair Jerome Powell stated that inflation was still too high and that pressures would probably need to be reduced by slower economic growth.
The past week was challenging for Wall Street. The S&P 500 recorded its first negative week in three at the end of the week, falling 2.4%. The Nasdaq Composite saw its second straight losing week while the Dow Jones Industrial Average lost 1.6%.
This week marks the start of the earnings season, with a number of major IT giants expected to report. Investors will be looking for information from Alphabet, Amazon, Meta, and Microsoft that will be crucial for the stock market.
Source (CNBC)