U.S. stock index futures are indicating a largely flat start to trading on Monday, pointing to subdued market conditions after the mixed performance seen at the end of last week.
Investors appear hesitant to take decisive positions ahead of the Federal Reserve’s policy announcement on Wednesday. While the central bank is broadly expected to leave interest rates unchanged, markets will closely scrutinize its statement for any hints about the future direction of monetary policy.
Corporate earnings are also set to play a major role in the coming sessions, with results due from several heavyweight companies including Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL).
Geopolitical developments remain a key source of uncertainty. President Donald Trump has warned he may impose a 100% tariff on imports from Canada in response to a potential trade agreement between Ottawa and Beijing. Canadian Prime Minister Mark Carney responded by saying his government has no intention of pursuing such a deal.
At the same time, concerns are growing about another possible U.S. government shutdown. A group of Democratic senators has threatened to block a spending bill if it includes funding for the Department of Homeland Security, following the fatal shooting of a U.S. citizen by federal immigration agents in Minneapolis over the weekend.
After posting strong gains earlier in the week, U.S. equity markets delivered a split performance on Friday. The Dow Jones Industrial Average retreated, while the Nasdaq continued its advance, notching its third straight daily gain.
The Dow closed down 285.30 points, or 0.6%, at 49,098.71. The S&P 500 edged higher by 2.26 points to 6,915.61, while the Nasdaq climbed 65.22 points, or 0.3%, to finish at 23,501.24.
For the holiday-shortened week, all three major indexes ended lower. The Nasdaq slipped 0.1%, while the S&P 500 and the Dow fell by 0.4% and 0.5%, respectively.
Market volatility on Friday reflected shifting geopolitical concerns. Earlier worries over Greenland eased, only to be replaced by renewed anxiety about a possible escalation between the United States and Iran.
After ruling out the use of force to acquire Greenland and easing tariff threats toward Europe, Trump appeared to refocus on Iran. Speaking to reporters aboard Air Force One on Thursday, he said a U.S. “armada” was heading toward the Middle East.
“We’re watching Iran,” Trump said. “You know we have a lot of ships going in that direction just in case. We have a big flotilla going in that direction and we’ll see what happens.”
Previously, Trump had stepped back from threats of military action against Iran tied to its response to widespread protests.
On the economic front, fresh data pointed to improving consumer confidence. The University of Michigan revised its January consumer sentiment index higher to 56.4 from a preliminary reading of 54.0, exceeding expectations and rising above December’s level of 52.9.
Sector performance was mixed. Software stocks led gains, lifting the Dow Jones U.S. Software Index by 2.2%. Shares of gold miners also advanced alongside a continued surge in gold prices, with the NYSE Arca Gold Bugs Index up 1.5%.
Meanwhile, computer hardware stocks lagged sharply, dragging the NYSE Arca Computer Hardware Index down 2.9%. Banking and housing shares also weakened, with the KBW Bank Index down 2.2% and the Philadelphia Housing Sector Index off 1.6%.
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