On Monday, stock markets are anticipated to open lower, extending the significant decline observed last Friday. Futures for major indices suggest a downward trend, with the S&P 500 futures dropping by 0.6 percent.
The tech sector might further pressure the market, particularly with shares of Nvidia (NVDA) sliding 3.0 percent in pre-market trading. Concerns surrounding interest rate projections are expected to fuel selling pressure, following the release of a stronger-than-expected monthly jobs report last Friday.
Interest rate apprehensions have recently driven bond yields higher, pushing the yield on the benchmark ten-year note to its peak in over a year.
This week's reports on consumer and producer price inflation are likely to shed more light on the future of interest rates. Additionally, reports on weekly jobless claims, retail sales, and industrial production will capture attention as the week progresses.
The earnings season gains momentum this week, with financial heavyweights Citigroup (C), Goldman Sachs (GS), JPMorgan (JPM), and Wells Fargo (WFC) scheduled to release their quarterly earnings.
The market suffered on Friday due to widespread selling, triggered by robust non-farm payroll data that heightened fears of the Federal Reserve maintaining current interest rates or reducing the pace of cuts. Escalating bond yields exacerbated the situation.
All major market indices ended significantly lower. The Dow Jones Industrial Average sank by 696.75 points or 1.6 percent, closing at 41,938.45. The S&P 500 lost 91.21 points or 1.5 percent, finishing at 5,827.04, while the Nasdaq decreased by 317.25 points or 1.6 percent, concluding at 19,161.62.
In international markets, the Asia-Pacific stock markets mostly closed lower on Monday, with Japanese markets closed for a holiday. China’s Shanghai Composite Index declined by 0.3 percent, while the Hang Seng Index in Hong Kong dropped by 1.0 percent.
European markets also trended downwards for the day. The U.K.'s FTSE 100 Index fell by 0.4 percent, and both the French CAC 40 Index and the German DAX Index decreased by 0.5 percent.
In the commodities sector, crude oil futures jumped by $1.28 to $77.85 per barrel, following a significant rise of $2.65 to $76.57 per barrel last Friday. Gold futures, having surged by $24.20 to $2,715 an ounce in the previous session, are now falling by $27.60 to $2,687.40 an ounce.
In foreign exchange markets, the U.S. dollar is trading at 157.05 yen, down from 157.73 yen at Friday's New York trading close. Against the euro, the dollar is at $1.0214, a slight decrease from last Friday's $1.0244.
The material has been provided by InstaForex Company -
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