Key facts
- US stock index futures dipped on Monday as technology stocks eased from record highs.
- Investors are monitoring speeches from central bankers for clues on inflation and monetary policy.
- Benchmark 10-year U.S. Treasury yields were steady near multi-year highs at 5.28%.
- Brent crude futures hovered near $100 a barrel.
- Traders see an 80% chance of the Federal Reserve holding interest rates steady this month.
- Panmure Liberum forecasts the S&P 500 will fall more than 35% by end-2027.
US stock index futures dipped on Monday as technology stocks eased from record highs, while investors awaited further clues on monetary policy amid elevated Treasury yields and oil prices.
Chip stocks were a drag in premarket trade, with Intel dropping more than 4%, while Micron Technology dipped 0.3%. Nvidia edged up 0.5%, having touched a record high on Friday.
The tech-heavy Nasdaq had reached fresh peaks in the prior session after weaker-than-expected jobs data reduced expectations for a Federal Reserve rate hike at its policy meeting this month. According to the CME FedWatch tool, traders now assign an 80% probability to the Federal Reserve holding interest rates steady this month, although a December rate hike is largely priced in.
Benchmark 10-year U.S. Treasury yields were steady near multi-year highs at 5.28%, influenced by concerns over deteriorating government finances, substantial debt issuance, and high energy costs.
Brent crude futures were slightly higher but remained close to the $100-a-barrel mark, with persistent worries about potential disruptions to Gulf oil infrastructure due to the ongoing US-Israel conflict.
Investors will be closely watching speeches from global central bankers, including Federal Reserve Governor Christopher Waller at the Istanbul Economic Forum this week, for insights into inflation trends and monetary policy direction.
At 6:20 a.m. ET, Dow E-minis were down 101 points, or 0.2%, S&P 500 E-minis were down 14.25 points, or 0.18%, and Nasdaq 100 E-minis were down 78.25 points, or 0.25%.
Brokerage Panmure Liberum issued a warning that the equity bull market might be approaching its end, projecting a fall of over 35% for the S&P 500 by the end of 2027.
In other stock news, PTC surged 37% in premarket trading after France's Schneider Electric agreed to acquire the software firm for approximately $22.6 billion in an all-cash transaction. Cerebras Systems rose 6.6% after OpenAI CEO Sam Altman described the chip designer as a 'close partner' with whom they have 'deep engagement pushing on the frontiers of speed.'