U.S. stock index futures were trading higher ahead of Monday’s open, signaling a possible attempt by Wall Street to claw back some of the losses suffered during last week’s sharp sell-off.
Investors appear to be selectively buying after Friday’s pullback, which was driven primarily by heavy declines across the technology sector. That said, trading volumes could remain light as markets await several high-profile U.S. economic releases scheduled for the days ahead.
Attention will turn to Tuesday’s release of the November employment report and October retail sales figures, followed by November consumer inflation data due on Thursday. These reports could influence expectations around the Federal Reserve’s next policy steps after last week’s rate decision.
The Fed cut interest rates by 25 basis points as expected, but its latest projections highlighted growing divisions among policymakers over whether additional easing will be needed.
Stocks ended last week on a weak note after a mixed performance on Thursday gave way to broad selling pressure on Friday. All major indices finished lower, with the technology-heavy Nasdaq leading the declines.
By the closing bell, the Nasdaq had fallen 398.69 points, or 1.7%, to 23,195.17. The S&P 500 dropped 73.59 points, or 1.1%, to 6,827.41, while the Dow Jones Industrial Average slipped 245.96 points, or 0.5%, to 48,458.05, despite briefly touching a new intraday high earlier in the session.
Weekly results were mixed, with the Dow gaining 1.1% over the period, while the S&P 500 fell 0.6% and the Nasdaq declined 1.6%.
Technology stocks were at the center of Friday’s sell-off. Broadcom (AVGO) was among the hardest hit, plunging more than 11% despite posting stronger-than-expected quarterly earnings and issuing upbeat guidance.
Losses also extended to other major chip and software names, including Micron Technology (NASDAQ:MU), Oracle (NYSE:ORCL), Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA), underscoring an ongoing rotation away from tech.
Market sentiment was further weighed down by comments from Chicago Fed President Austan Goolsbee, who explained his opposition to last week’s rate cut. In remarks published on the Chicago Fed’s website, Goolsbee said he was concerned about “moving too quickly on rate cuts and assuming inflation pressures will fade on their own.”
“I supported rate reductions at the September and October meetings, but I think we should have waited for more evidence — particularly on inflation — before cutting further,” he said.
Computer hardware stocks were among the weakest performers on Friday, dragging the NYSE Arca Computer Hardware Index down more than 5%. Semiconductor and networking shares also came under heavy pressure, contributing to the Nasdaq’s sharp decline.
Outside of technology, stocks in oil services, brokerage firms and steelmakers also fell, while pharmaceutical names showed relative resilience.
Leave a Reply