Stock Futures Indicate Opening Decline
On Monday, stock futures are signaling a potentially low start as they head into the last week of August, aiming for a gain for the fourth consecutive month.
Futures tied to the Dow Jones Industrial Average and S&P 500 have dipped by about 0.3%, while Nasdaq futures are down 0.4%. On Friday, stocks jumped following comments from Federal Reserve Chairman Jerome Powell, who hinted at possible interest rate cuts next month. The Dow recently achieved its first record since December, although the S&P 500 ended just shy of a new high.
This month, stock performance has improved due to a decrease in worries about interest rate cuts, tariff impacts, and generally robust corporate earnings reports. As of today, the S&P 500 Index is up 2% for August, with the Dow gaining 3.4%, and the tech-heavy Nasdaq Composite increasing by 1.8%.
A key event this week is Nvidia’s quarterly revenue report, set for Wednesday after the market closes. Nevertheless, Nvidia’s shares saw a slight dip during pre-market trading.
Most other major tech stocks are also experiencing minor declines this morning. Microsoft, Apple, Amazon, Meta Platforms, Broadcom, and Tesla all saw drops of less than 1%, while Alphabet stocks are doing relatively well.
Intel’s shares, however, rose by nearly 2% after a significant gain of over 5% on Friday, following news that the struggling chipmaker agreed to sell a 10% stake to the US government.
In the cryptocurrency market, prices fell sharply as Bitcoin experienced a decline after a brief rally. Shares of MicroStrategy, a major corporate holder of Bitcoin, fell more than 4%, and Coinbase Global dropped nearly 3%.
Bitcoin is currently trading at approximately $111,200, down from around $117,000 late Friday, marking its lowest point since early July.
The yield on the 10-year Treasury, which influences borrowing costs broadly, has increased to 4.28%, up from 4.26% at the close of Friday. Meanwhile, the US dollar index rose 0.2%, reaching 97.90.
Lastly, West Texas intermediate crude oil futures have slumped for a fourth consecutive day, decreasing by 0.7% to $64.10 per barrel, marking its lowest level since early June last week. Gold futures have also dipped 0.1%, trading at $3,415 per ounce.
