By Bansari Mayur Kamdar and Shashwat Chauhan
(Reuters) -Wall Street was set to open lower on Monday, as investors awaited key inflation data this week that could provide more cues on the U.S. Federal Reserve's monetary policy path after a mixed jobs report last week.
All three major U.S. stock indexes ended the week lower on Friday, with the S&P 500 and Nasdaq coming off record highs as high-flying chip stocks fell and a labor market report showed more new jobs than expected, while the unemployment rate rose unexpectedly.
The mixed report bolstered bets of the Fed cutting interest rates in June. Friday's data even prompted some traders to bet on a May rate cut.
This week's February data, including consumer prices (CPI), will offer more clues on whether inflation has eased enough for policymakers to lower borrowing costs in the coming months.
"I would expect a hotter number to drive the market down unnecessarily," said Peter Andersen, founder of Andersen Capital Management in Boston.
"Though there is still a narrative that the Fed will cut rates as soon as possible."
Sticky inflation data for January and signs of a robust economy halted the AI-led rally last month, leading traders to push back bets on the timing of the first interest-rate cut to June from March.
Federal Reserve officials are in a media blackout ahead of their latest rate-setting meeting next week.
At 08:21 a.m. ET, Dow e-minis were down 171 points, or 0.44%, S&P 500 e-minis were down 21.25 points, or 0.41%, and Nasdaq 100 e-minis were down 87.5 points, or 0.48%.
AI-darling Nvidia (NASDAQ:NVDA) fell 0.8% in volatile premarket trading following a 5.5% drop on Friday, as chip stocks lost some momentum.
Chip peers Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO) slid 1.5% each.
Boeing (NYSE:BA) fell 2.1% after Alaska Airlines said on Saturday it was cooperating with the U.S. Department of Justice in a criminal investigation into a Boeing 737 MAX blowout on one of its flight in January.
Cryptocurrency and blockchain-related firms, including Coinbase (NASDAQ:COIN) Global, Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA), climbed between 4.3% and 6.2% as bitcoin hit a fresh record high.
Equitrans Midstream jumped 8.2% after EQT Corp (NYSE:EQT) said on Monday it had decided to buy back its former unit in an all-stock deal. EQT shares slid 4.3%.
The 2024 U.S. presidential election is also coming into focus, with investors bracing for a likely rematch between President Joe Biden and former President Donald Trump.