Futures for Dow, S&P 500, and Nasdaq-100 Drop Sharply Sunday Night
U.S. stocks futures fell late Sunday following a volatile week on Wall Street, which saw the Nasdaq enter correction territory.
As of 11 p.m. Eastern, Dow Jones Industrial Average futures (YM00) slid more than 250 points, or 0.7%. S&P 500 futures (ES00) dropped 1.4%, and Nasdaq-100 futures (NQ00) tumbled 2.4%. Each showed slight improvement from their session lows late Sunday.
Crude oil futures (CL00) edged up slightly amid concerns over escalating Middle East hostilities. Cryptocurrencies dropped, led by Bitcoin (BTCUSD), which fell 8% to below $55,000 after peaking at over $65,000 on Friday. Ether (ETHUSD) sank more than 15%.
Meanwhile, Japan’s Nikkei 225 plunged 5%, continuing last week’s trend, as global markets reacted to recent U.S. economic data and Wall Street’s losses.
U.S. stocks fell Friday after a softer-than-expected jobs report raised concerns about economic growth. This followed Fed signals on Wednesday indicating potential interest rate cuts in September. However, investors worry these cuts might be too late to prevent a recession.
Last week, all three major indexes experienced significant losses. The S&P 500 (SPX) had its worst week since April, falling 2.1%. The Dow (DJIA) also dropped 2.1%, and the Nasdaq (COMP) saw a 3.4% decline, ending 10% below its July 10 record close, placing it in correction territory.
Stephen Innes, managing partner at SPI Asset Management, noted, “Market participants scrambled for hedges amidst growing panic over interest rates and a looming recession. The spike in volatility underscores how jittery markets have become.”
He added, “The real question is whether the typical market reflex to sell volatility or buy the dip can overcome the anxiety from this sudden recession scare.”
Investors might brace for further declines in tech stocks on Monday after Warren Buffett’s Berkshire Hathaway revealed it reduced its Apple Inc. (AAPL) stake by nearly 50% last quarter. Tech stocks have struggled recently, highlighted by Intel Corp. (INTC), whose stock plunged 26% on Friday following disappointing earnings.
