Stock Market Today: Dow futures extend losses after 697-point tumble as yields rise; S&P 500 election games may be wiped out; Oil climbs
U.S. stock futures fell Monday, as bond yields rose on inflation concerns that put in jeopardy the gains made since Republicans swept to power in the November elections.
Dow Jones Industrial Average futures fell 160 points, or 0.4%, to 42000.
S&P 500 futures dropped 55 points, or 0.9%, to 5812.
Nasdaq-100 futures decreased 300 points, or 1.4%, to 20716.
On Friday, the Dow Jones Industrial Average fell 697 points, or 1.63%, to 41938, the S&P 500 declined 91 points, or 1.54%, to 5827, and the Nasdaq Composite dropped 317 points, or 1.63%, to 19162.
The S&P 500 closed at 5,782.76 on Election Day.
Friday’s fall came after an unexpected surge in payrolls that has resulted in bond yields surging, as well as oil prices recovering. Analysts at Barclays say they’re now expecting just one Fed rate cut this year, instead of two. “December’s U.S. jobs report was strong across the board, and PMIs point to some firming in demand and cost pressures,” they said.
This week will see the release of consumer prices as well as the release of bank earnings for the fourth quarter.
Oil prices also continued to rise after new sanctions were imposed on Russian crude exports.