U.S. stock index futures dropped on Sunday evening as worries about an economic slowdown persisted, and the technology sector continued to experience significant profit-taking.
By 19:28 ET (23:28 GMT), S&P 500 Futures declined 0.9% to 5,329.0 points, Nasdaq 100 Futures fell 1.4% to 18,302.0 points, and Dow Jones Futures decreased by 0.5% to 39,680.0 points.
Wall Street Hit by Economic Slowdown Fears
The decline in Wall Street futures followed a week of losses in U.S. stocks, driven by fears of an economic downturn. Weak business activity and labor market data have fueled concerns that the Federal Reserve’s prolonged high-interest rates may be jeopardizing the possibility of a smooth economic recovery.
These worries intensified on Friday after July’s nonfarm payrolls report significantly underperformed expectations, signaling a notable weakening in the labor market.
Although the disappointing data increased hopes for further interest rate reductions by the Fed, it did little to boost interest in riskier assets.
The technology sector faced pronounced selling pressure, with the tech-heavy NASDAQ Composite dropping 2.4% to 16,776.16 points on Friday. The index is now over 10% below the record high it reached earlier this year.
The S&P 500 saw a 1.8% decline to 5,346.56 points, while the Dow Jones Industrial Average, which has a smaller proportion of tech stocks, fell 1.5% to 39,737.26 points.
Upcoming Economic Signals and Earnings Reports
Following a Federal Reserve meeting last week, where interest rates were left unchanged but a potential September rate cut was hinted at, investors will be looking for more guidance from several Fed officials scheduled to speak this week.
Key economic data releases are also expected, including the non-manufacturing purchasing managers index from the Institute of Supply Management, which is set to be published on Monday.
On the corporate earnings front, industrial giant Caterpillar Inc and ride-sharing leader Uber Technologies Inc are scheduled to report on Tuesday.
Additionally, Super Micro Computer Inc, which recently saw a significant valuation increase due to excitement around artificial intelligence, is due to release its earnings on Tuesday. Media companies Walt Disney Company and Warner Bros Discovery Inc will report their earnings on Wednesday.
