Dow futures drop 300 points to start week as Wall Street rally continues to falter
U.S. stock futures fell on Monday after last week’s summer rally halted as fears of aggressive interest rate hikes returned to Wall Street.
Dow Jones Industrial Average futures fell 321 points, or 0.95%. S&P 500 and Nasdaq 100 futures fell 1.22% and 1.57% respectively.
The moves come as European markets have seen steep declines, in part due to fears of rising inflation and rising interest rates around the world.
On Friday, the S&P 500 closed down 1.29%. The Dow Jones Industrial Average fell 292 points, or 0.86%, and the Nasdaq Composite fell 2.01%. Major averages also posted weekly losses.
These moves precede what could be a volatile week of trading on Wall Street. Investors are anticipating Fed Chairman Jerome Powell’s final comments on inflation at the central bank’s annual economic symposium in Jackson Hole.
“We’ve written a number of times recently about waiting and trading ahead of key events/outputs…and how that can pave the way for greater volatility around the events themselves, and we might see a bit of that play out next week as investors await the symposium,” read a note Friday from Christopher Jacobson of Susquehanna.
On the earnings front, traders expect Palo Alto Networks and Zoom Video to report results Monday after the bell.