Wall Street appears poised for a lower open on Monday following a notable rally that drove the major indexes to record highs in the previous session. Investor sentiment has been dampened by uncertainties surrounding President Donald Trump’s visa policies, which have raised concerns among technology firms that rely heavily on skilled labor.
The recent tech-driven surge saw the S&P 500 and Nasdaq achieving their third consecutive week of gains. However, the environment shifted as U.S. technology companies faced a dip in premarket trading. This came in response to the Trump administration’s announcement that it would impose annual fees of $100,000 for H-1B working visas. This policy shift has prompted leading tech companies and financial institutions to advise employees to either remain in the U.S. or return promptly.
Major players in the tech sector, including Microsoft and Amazon.com, experienced declines, reflecting broader market hesitation. Companies like Cognizant Technology Solutions, JPMorgan, and Intel—among the largest sponsors of H-1B visas—saw their shares fall between 0.5% and 1.6%. J.P. Morgan equity analyst Tien-tsin Huang commented that the increased fees and tightening visa regulations could create challenges for businesses, prompting them to take action to mitigate financial impacts.
As trading opened, Dow E-minis were down 174 points (0.37%), S&P 500 E-minis fell by 23 points (0.34%), and Nasdaq 100 E-minis dropped 96.25 points (0.39%). Last week’s announcement from the Federal Reserve regarding a likely quarter-point cut to interest rates, along with signals of additional reductions in future meetings, had contributed to Wall Street’s rally. This surge has been further bolstered by renewed enthusiasm surrounding AI-related stock trading.
Futures associated with the Russell 2000 index also saw a modest decline of 0.2%, following its peak at an intraday record high on Friday. Despite the current downturn, Wall Street’s three major indexes have maintained positive performance thus far in September—a month historically challenging for U.S. equities, where the S&P 500 has averaged a decline of 1.4% since 2000.
This week promises a slew of economic data releases, including figures for personal consumption expenditures, which serve as the Federal Reserve’s preferred measure of inflation, as well as updates on gross domestic product. Additionally, investors are expected to closely analyze remarks from various policymakers, including newly appointed Federal Reserve Governor Stephen Miran.
In a separate development, Kenvue shares dropped 4.6% in advance of the administration’s announcement regarding autism-related findings. A report earlier in the month indicated that the administration planned to announce a potential link between Kenvue’s pain medication Tylenol and autism in children born to mothers who took the drug during pregnancy.
