Tech Stocks Cool as Futures Dip Ahead of Fed Policy Clues

US stock index futures saw a slight decline on Monday as technology stocks pulled back from recent record highs. Investors were awaiting fresh signals about monetary policy, with Treasury yields and oil prices remaining elevated. Chip stocks led the downturn in premarket trading, with Intel falling over 4% and Micron Technology dipping 0.3%. Nvidia, however, edged up 0.5% after hitting a record high on Friday.

The tech-heavy Nasdaq had reached new peaks in the prior session following weaker-than-expected jobs data, which reduced expectations of a Federal Reserve rate hike this month. The CME FedWatch tool now indicates an 80% chance of the Fed holding interest rates steady in October, though a December rate hike remains likely. Benchmark 10-year US Treasury yields held steady at 5.28%, near multi-year highs, amid concerns over government finances and energy costs.

Brent crude futures were slightly higher but remained close to the $100-a-barrel level due to ongoing tensions in the Gulf region. Investors will be watching speeches from top global central bankers, including Federal Reserve Governor Christopher Waller, for insights on inflation and monetary policy. As of 06:20 a.m. ET, Dow E-minis were down 101 points, S&P 500 E-minis fell 14.25 points, and Nasdaq 100 E-minis dropped 78.25 points.

Brokerage Panmure Liberum warned that the equity bull market may be nearing its end, predicting a more than 35% drop in the S&P 500 by the end of 2027. Meanwhile, PTC surged 37% in premarket trading after Schneider Electric agreed to acquire the software firm for approximately $22.6 billion. Cerebras Systems rose 6.6% after OpenAI CEO Sam Altman highlighted the chip designer as a 'close partner' with deep engagement in advancing technology.