Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 29, 2024.
Brendan McDermid | Reuters
U.S. stock futures fell on Monday after the Dow Jones Industrial Average closed out its worst week since October. Investors are also looking ahead to inflation data due out later this week.
Dow Jones Industrial Average futures dipped 74 points, or 0.19%. S&P 500 futures and Nasdaq 100 futures declined 0.21% and 0.34%, respectively.
Wall Street is coming off a losing week for the major averages. The 30-stock Dow slid 0.93% last week, marking its worst performance since October. The S&P 500 dipped 0.26%, while the Nasdaq Composite dropped 1.17%.
Investors took profits in some market leaders as exceedingly high valuations have many concerned stocks could be due for a pullback after this year's rally. Five of the Magnificent Seven companies declined last week, with Nvidia and Meta Platforms alone pulling away from the pack.
The February jobs data on Friday also gave investors mixed signals as to when the Federal Reserve could be expected to cut interest rates. While the U.S. economy added more jobs than economists anticipated, a higher unemployment rate and lighter-than-expected wage growth were encouraging signals the central bank could start easing up on monetary policy.
Investors will seek more signs of progress on inflation this week. February's consumer and producer price indexes — that are set to release Tuesday and Thursday, respectively — come after January's surprisingly hot report dashed hopes the path toward the Fed's 2% target will be easy. Traders will get their last major economic reports before Fed leaders convene for their March policy meeting.
"We aren't counting on the Fed to cut rates at its meeting later this month," wrote Mike Dickson, head of research at Horizon Investments. "Given this recent spike, we expect the Fed to hold off until it sees at least three consecutive months of lower core services inflation. That means June at the earliest—and later in 2024 if services inflation stays sticky."
On the earnings from, the software platform Oracle is set to report on Monday after the close.
Tech stocks drag Nikkei as GDP readings clear the way for BOJ to raise rates
Japan's Nikkei 225 led losses in Asia on Monday, falling over 2% and dragged by tech stocks.
According to Factset, semiconductor equipment manufacturer Advantest Corp was the largest loser on the index, down 6.32%. This was followed by counterpart Screen Holdings, which slipped 5.75%.
Other names on the top losers list also include Softbank Group, which declined 5.19% as well as Kawasaki Heavy Industries, which fell 4.16%.
— Lim Hui Jie
Japan averts technical recession as revised fourth-quarter data shows economy grew 0.4%
Japan posted a revised fourth-quarter GDP growth of 0.4% on an annualized basis, averting a technical recession.
This comes after earlier estimates had shown that Japan's economy shrank 0.4% in the fourth quarter on an annualized basis, following a revised 3.3% slump in the third quarter, fulfilling the definition of a technical recession.
A positive GDP reading could clear the way for the Bank of Japan to raise rates sooner rather than later.
Read the full story here.
— Lim Hui Jie
China swings back into inflation in February with 0.7% gain in CPI
China's consumer price index climbed 0.7% year-on-year in February, marking the first time in four months that the country's inflation rate rose.
The figure is a marked reversal from the 0.8% fall in January, which also was China's largest rate of deflation since September 2009. It also beat the 0.3% rise that economists polled by Reuters were expecting.
On a month on month basis, the CPI rose 1%, higher than the 0.7% expected by the Reuters poll and compared to the 0.3% rise seen in January.
Separately, the country's producer price index slipped 2.7% year-on-year, more than the 2.5% fall in January.
— Lim Hui Jie
Consumer price index set to release this week
The February's consumer price index coming out Tuesday is expected to show prices rose by 0.4% on a monthly basis, and 3.1% year over year, according to economists polled by Dow Jones. That's compared to increases of 0.3% and 3.1%, respectively, in the prior reading.
Core CPI, which excludes volatile food and energy prices, is set to show a 0.3% increase on the month, and a 3.7% rise from the year-ago period, consensus estimates show. Previously, it had risen 0.4% and 3.9% on the month and year, respectively.
— Sarah Min
Stock futures open little changed
U.S. stock futures were little changed Sunday night.
Dow Jones Industrial Average futures rose by 19 points, or 0.05%. S&P 500 futures and Nasdaq 100 futures dipped 0.04% and 0.11%, respectively.
— Sarah Min
