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US stock futures sink as economic jitters persist, tech rout continues

Published 2024-08-04, 08:08 p/m
© Reuters
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Investing.com-- U.S. stock index futures fell in evening deals on Sunday amid persistent concerns over an economic slowdown and technology stocks continued to grapple with extended profit-taking. 

S&P 500 Futures fell 0.9% to 5,329.0 points, while Nasdaq 100 Futures fell 1.4% to 18,302.0 points by 19:28 ET (23:28 GMT). Dow Jones Futures fell 0.5% to 39,680.0 points. 

Slowdown fears batter Wall Street 

Losses in Wall Street futures came after U.S. stocks were walloped by fears of an economic slowdown last week.

A string of weak readings- on business activity and the labor market- ramped up concerns that the Federal Reserve had kept interest rates high for too long, and that chances of a soft landing for the economy were fading.

This notion came to a head on Friday after nonfarm payrolls data for July missed expectations by a wide margin, indicating a substantial cooling in the labor market.

While the data did drive up hopes for more interest rate cuts by the Fed, it inspired little appetite for risk-driven assets. 

Selling also remained largely biased towards technology stocks, with the tech-heavy NASDAQ Composite falling 2.4% to 16,776.16 points on Friday. The index was now down more than 10% from a record high hit earlier in the year. 

Losses in tech saw the S&P 500 sink 1.8% to 5,346.56 points, while the Dow Jones Industrial Average, which has relatively less tech weightage than its peers, fell 1.5% to 39,737.26 points. 

Economic cues, more earnings on tap

After a Fed meeting last week, where the central bank kept rates unchanged but signaled a September cut, markets will be watching for more cues from a string of Fed speakers through this week.

Some economic data is also on tap this week, with non-manufacturing purchasing managers index data from the Institute of Supply Management due on Monday.

In company earnings, industrial bellwether Caterpillar Inc (NYSE:CAT) and ride sharing major Uber Technologies Inc (NYSE:UBER) are due on Tuesday.

Super Micro Computer Inc (NASDAQ:SMCI)- which saw a major valuation spike on hype over artificial intelligence- is also due on Tuesday, while media majors Walt Disney Company (NYSE:DIS) and Warner Bros Discovery Inc (NASDAQ:WBD) are due on Wednesday.

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