U.S. stock futures fell on Monday after Federal Reserve Chairman Jerome Powell dampened prospects for early interest rate cuts, ending a week focused on corporate earnings to sustain recent gains. The stakes have increased.
S&P 500 (^GSPC) futures fell 0.2%, signaling a rebound from the benchmark's record. Futures on the Dow Jones Industrial Average (^DJI) fell about 0.2%, and futures on the tech-heavy Nasdaq 100 Index (^NDX) fell 0.1%.
Stocks are falling after a rollercoaster week that ended with a week of wins thanks to big jobs numbers and high-profile earnings releases in January. “The danger of acting too soon is that the job is not completely done” in curbing inflation, Chairman Powell said Sunday, adding to a mid-week message that the central bank would be cautious in deciding when to cut interest rates. This excitement has come to an end after doubling the amount.
In response, traders scaled back bets on rate cuts, not just in March but also in May, according to the CME FedWatch tool. US Treasuries fell, with the 10-year Treasury yield (^TNX) rising about 6 basis points to 4.08%.
Investors are currently looking ahead to this week's quarter after glowing reports from Meta Inc. (META) and Amazon Inc. (AMZN) last week sent stocks into uptrend mode with little mention of economic conditions. Looking for inspiration in financial results. Highlights McDonald's (MCD) rides the wave of quarterly earnings releases on Monday, with an announcement scheduled before the bell.