U.S. stock index futures signaled a weaker start on Monday, suggesting markets may give back some of last week’s gains after two consecutive sessions of strong advances.
Analysts pointed to profit-taking as one reason for the early weakness, with investors locking in gains after Friday’s surge that drove all three major indexes to fresh record closes. The rally was fueled by the Federal Reserve’s widely anticipated quarter-point rate cut.
Adding to the cautious tone was news from Washington. The White House confirmed that President Donald Trump signed a proclamation restricting entry for certain H-1B visa workers. The policy introduces a new $100,000 application fee, described by the administration as a way to “curb abuses that displace U.S. workers and undermine national security.”
Market watchers noted that the technology sector could be particularly sensitive to the change. “Investors will be watching closely for any fall-out in the technology sector from the sharp rise in H1-B visa fees – affecting skilled foreign workers,” said AJ Bell investment director Russ Mould.
“The news sparked some initial confusion around whether it would affect current visa holders and while this fear has been addressed and it has been confirmed as a one-time fee, it could still have a significant impact on tech firms,” he added. “Many in the sector employ large numbers of people on these visas.”
Even so, overall trading volumes may remain muted ahead of key U.S. inflation data releases and scheduled remarks from several Federal Reserve officials, including Chair Jerome Powell.
Markets Last Week
Stocks closed out last week on a strong note. The Nasdaq rose 160.75 points, or 0.7%, to finish at 22,631.48, while the S&P 500 added 32.40 points, or 0.5%, to 6,664.36. The Dow advanced 172.85 points, or 0.4%, to 46,315.27.
For the week, the Nasdaq gained 2.2%, with the S&P 500 and Dow up 1.2% and 1.1%, respectively. September, often a difficult month for equities, has so far bucked that trend as optimism over lower rates has underpinned sentiment.
The Fed’s rate cut on Wednesday — along with its guidance for two additional reductions this year — reinforced bullish momentum. Confidence was further supported by President Trump, who described his latest conversation with Chinese President Xi Jinping as “very productive.”
According to Trump, the call covered trade, fentanyl controls, the war in Ukraine, and a deal over TikTok’s U.S. operations.
Sector Moves
Friday’s session highlighted sector divergences. Gold producers rallied, with the NYSE Arca Gold Bugs Index jumping 4.3% as bullion prices climbed. Software names were also strong, pushing the Dow Jones U.S. Software Index up 1.8%.
In contrast, energy shares dropped in tandem with crude oil’s retreat. The Philadelphia Oil Service Index lost 2.1%, while the NYSE Arca Oil Index declined 1.5%. Homebuilders also weakened, dragging the Philadelphia Housing Sector Index down 1.2%.
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