US stock futures saw a slight decline on Monday as investors prepared for a week filled with significant economic data and corporate earnings reports. The Dow Jones Industrial Average futures dipped by 0.1%, reflecting a period of volatility as they fluctuated between minor gains and losses. Meanwhile, S&P 500 futures decreased by approximately 0.3%, and futures for the tech-heavy Nasdaq 100 fell by 0.5%.
The previous Friday marked a notable achievement for the Dow, which surged by more than 1,200 points, or 2.5%, resulting in its first-ever close above the 50,000 milestone after momentarily surpassing it intraday. The S&P 500 and Nasdaq Composite both concluded the day with gains of around 2%, as Wall Street rebounded from a challenging week characterized by a sell-off in tech stocks.
In the bond market, US bond prices fell on Monday, influenced by reports that Chinese regulators were encouraging banks to decrease their holdings of US debt due to market volatility concerns.
On the commodities front, gold prices rose above $5,000 an ounce on Monday as dip-buyers returned following a tumultuous week for precious metals. In contrast, Bitcoin experienced a dip, falling below $70,000 after recent fluctuations in the cryptocurrency market.
This week is set to deliver crucial economic reports, starting with the delayed January employment report expected on Wednesday. Originally scheduled for last Friday, the report’s release was postponed due to a partial government shutdown. Anticipations for job growth have softened, following an ADP report that revealed only 22,000 private-sector job additions last month, a sharp decline from 140,000 in the same period the previous year.
Other significant data points include January’s Consumer Price Index, slated for release on Friday after its own delay attributable to shutdown issues. In addition to economic data, the week features earnings reports from major companies including Coca-Cola, McDonald’s, Cisco, and ON Semiconductor. These reports are anticipated to influence expectations regarding the Federal Reserve’s monetary policy trajectory, particularly as investors consider the potential changes under President Trump’s nominee to succeed Fed Chair Jerome Powell, former Fed governor Kevin Warsh.
Despite Warsh being viewed as a policy hawk with experience from the 2008 financial crisis, his nomination did not significantly bolster the U.S. dollar, which has seen a decline of approximately 10% since Trump’s administration began.
During premarket trading, notable movers included Kroger, which saw its stock rise by 5% following news that former Walmart executive Greg Foran is set to become the supermarket chain’s next CEO. Conversely, shares of Hims & Hers dropped by 18% as the company withdrew its $49 weight-loss pill due to legal challenges from a Danish firm and the FDA. Strategy’s stock also fell by 4% as Bitcoin’s value dipped below the $70,000 mark.
Novo Nordisk’s shares experienced a rise of 6% in premarket trading, propelled by Hims’ decision to cancel their weight-loss pill offering. This shift came amid Novo’s recent struggles, especially after rival Eli Lilly’s shares surged following positive earnings reports.
In a separate market development, QuantumScape’s stock jumped by 14% after the company unveiled its new high-tech battery production facility, the “Eagle Line,” in San Jose.
International markets responded positively, with Tokyo’s Nikkei 225 share index rising by 4.7% after Japan’s Prime Minister Sanae Takaichi’s party secured a supermajority in parliamentary elections, indicating a likely continuation of market-friendly policies. Other Asian markets also showed gains, following Wall Street’s recovery.
Lastly, oil prices experienced a decline, attributed to easing tensions that have alleviated some supply pressures. Overall, this week shapes up to be critical for investor sentiment as a range of economic and corporate developments unfold.
