US Stock Futures Dip as Tech Shares Pull Back and Fed Rate Hike Odds Dim
US stock market futures started the week on a cautious note as technology shares pulled back from recent highs. Dow, S&P 500, and Nasdaq futures all dipped ahead of the Wall Street opening bell. Investors are weighing the impact of weaker-than-expected US jobs data against elevated Treasury yields and oil prices, which could influence the Federal Reserve’s interest-rate path.
The Dow Jones Industrial Average futures fell around 0.2% in premarket trading. The S&P 500 and Nasdaq futures also moved lower as investors took a more cautious approach to tech stocks. Nvidia, a key player in the AI sector, gained about 0.5% after hitting a record high on Friday, while Intel dropped over 4% and Micron Technology slipped 0.3%.
The latest employment data reduced expectations for an October Fed rate hike, with traders pricing in an 80% probability of rates remaining unchanged. However, high Treasury yields and oil prices near $100 a barrel pose potential headwinds for equities. The 10-year Treasury yield hovered around 5.28%, near multi-year highs, while Brent crude was around $101.39 a barrel.
Investors will be closely monitoring several key factors as trading begins, including Treasury yields, oil prices, and Nvidia’s performance. The near-term outlook for Wall Street remains mixed, balancing hopes for a less aggressive Fed against concerns about inflation and financing costs.