U.S. stock futures edged lower on Monday as investors took a cautious approach following the S&P 500’s third straight weekly gain and another record high. Dow Jones futures fell 108 points, or 0.2%, while S&P 500 and Nasdaq 100 futures slipped 0.17% and 0.28%, respectively, signaling a softer start for Wall Street.
The pullback comes after a strong run for U.S. equities, supported by better-than-expected corporate earnings and renewed investor confidence. The S&P 500 reached a fresh all-time high last week as a solid earnings season helped push stocks higher, despite ongoing geopolitical tensions in the Middle East and growing debate over whether the artificial intelligence boom has lifted technology stocks too far.
Recent economic data has also influenced market expectations. Weaker retail sales and relatively mild inflation have reduced expectations that the Federal Reserve will raise interest rates at its next meeting. Lower rate expectations can provide support for growth and technology stocks because investors may become more willing to pay higher prices for companies expected to deliver strong future earnings.
Attention now turns to a relatively quiet economic calendar, with investors awaiting the release of the Federal Reserve’s latest meeting minutes on Wednesday. Earnings will remain another major focus, with major retailers including Home Depot, Lowe’s and Walmart scheduled to report results this week. Their performances could provide fresh clues about the strength of consumer spending and the broader U.S. economy.
Markets will also be watching the August Empire State manufacturing index and the NAHB Housing Market Index for signs of how businesses and the housing sector are performing. After three consecutive weeks of gains, investors may be asking whether Wall Street can maintain its momentum or whether the latest dip in stock futures signals a more cautious phase for U.S. markets.
source: cnbc
