Stock Futures Drop After Record Wall Street Rally as Investors Brace for Nvidia Earnings and Rising Oil Prices

Stock futures slipped early Monday after a strong, record-setting week on Wall Street, signaling a cautious start as investors shifted their attention to upcoming corporate earnings and global risks. Futures tied to the Dow Jones fell about 300 points, while the S&P 500 and Nasdaq-100 also edged lower as traders prepared for a data-heavy week.

The pullback comes as markets brace for key earnings reports from tech giant Nvidia, as well as major U.S. retailers like Target and Walmart. These updates are expected to play a crucial role in shaping investor sentiment, especially after the S&P 500 and Nasdaq recently hit fresh all-time highs and the Dow briefly crossed the 50,000 mark.

At the same time, oil prices continued to climb, adding more pressure to already sensitive markets. Crude benchmarks like West Texas Intermediate and Brent crude rose amid ongoing geopolitical tensions between the U.S. and Iran, with renewed warnings from former President Donald Trump raising fears of potential supply disruptions.

Bond markets also added to investor anxiety, with global yields climbing sharply. The U.S. 30-year Treasury yield hit its highest level in about a year, while similar moves were seen in the U.K. and Japan. Analysts say these rising yields are contributing to a “risk-off” mood, particularly hitting tech stocks that previously led the market rally.

Despite last week’s strong performance, Friday’s selloff in tech-heavy indices like the Nasdaq-100 has sparked concerns that momentum may be slowing. Market experts, including Fundstrat’s Mark Newton, warn that rising volatility, inflation pressures, and expectations of “higher for longer” interest rates could signal a more turbulent phase ahead for global equities.

source: cnbc