U.S. stock futures fell ahead of Monday’s open as investors await a blockbuster week that includes the latest Fed meeting, a flurry of heavy earnings reports and jobs data.
Futures linked to the S&P 500 (^GSPC) were down 1%, while futures on the Dow Jones Industrial Average (^DJI) were down 0.7%. Contracts on the tech-heavy Nasdaq Composite (^IXIC) fell around 1.3%
The yield on the benchmark 10-year US Treasury rose to 3.557% Monday morning. The dollar index fell 0.08% to $101.85.
Shares closed a winning week on Friday after data pointed to stronger-than-expected U.S. economic growth, while Tesla shares jumped more than 10% after reporting record quarterly revenue.
All major market averages ended higher for the week, with the S&P 500 gaining 2.5%, the Dow Jones Industrial Average ending up 1.8% and the tech-heavy Nasdaq Composite climbing north of 4 %.
The Commerce Department said Friday that the price index for personal consumption expenditures, excluding energy and food, showed prices rose 4.4% from a year earlier. Friday’s report came a day after the government reported a better-than-expected 2.9% gross domestic product gain for the fourth quarter, bolstering hopes that the Federal Reserve could head into the elusive scenario of “soft landing”.
Fed officials will meet in Washington, DC on Tuesday and Wednesday. The meeting will end with Fed Chairman Jerome Powell holding a press conference on Wednesday afternoon as he outlines signs of the central bank’s way forward on rate hikes.
“The FOMC’s job isn’t done yet, although recent declines in inflation and wage growth give it more time to assess the effects of past policy actions. A key challenge for the FOMC will be executing its transition to lower rate hikes without reinforcing expectations that the end of its hike cycle is imminent,” the Barclays team wrote.
At the end of the week, investors will have another clue to the Fed’s trajectory as the government’s January jobs report is due out Friday morning. Economists polled by Bloomberg expect 185,000 jobs to have been added to the economy last month, a slowdown from December’s gain of 223,000 jobs.
Meanwhile, it’s the biggest week of the fourth-quarter earnings season, with Big Tech’s results in the spotlight amid thousands of industry layoffs. Despite previously announced job cuts, tech companies are partly to blame for the disaster, writes Dan Howley of Yahoo Finance.
The list of top earners includes reports from tech heavyweights Amazon (AMZN), Apple (AAPL), Alphabet (GOOG) and Meta Platforms (META).
Elsewhere in the markets, shares of Lucid (LCID) rose more than 4% before the opening bell. The electric vehicle maker jumped more than 88% on Friday following speculation that a Saudi public investment fund (PIF) was considering buying its remaining stake in the company.
Shares of Alibaba (BABA) fell 5% in premarket trading on Monday after reports that the Chinese e-commerce site would move its headquarters out of the country, suggesting the new campus could be in Singapore, according to sources. information.
Shares of SoFi Technologies (SOFI) rose 7% on Monday morning after the digital financial services company released upbeat earnings forecasts for the full year ahead. SoFi said total deposits increased 46% on a sequential basis. The company expects adjusted EBITDA of $40 million to $45 million for the first quarter and for the full year, and expects to see between $260 million and $280 million.
In the cryptocurrency market, Bitcoin (BTC-USD) fell more than 1% to $23,168 in the past 24 hours, according to CoinMarketCap. However, the biggest token is on course for its best January since 2013, according to Bloomberg, on bets that monetary tightening and the sector crisis are both receding.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
Click here for the latest stock market news and in-depth analysis, including events moving stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app to Apple or android
Follow Yahoo Finance on Twitter, Facebook, instagram, Flipboard, LinkedInand Youtube