Dow futures are taking a bit of a breather this Monday after an upbeat week that saw major indexes hitting record highs.
Futures for the S&P 500, and Nasdaq all slipped slightly, signaling some caution in the air.
Last week’s Federal Reserve rate cut had lifted spirits, but now investors are pausing to see how upcoming inflation reports and Fed comments will shape the market.
Added to that, new visa fee policies are stirring concerns for tech companies’ hiring plans. All in all, the mood is watchful but steady as traders wait for clearer direction.
5 things to know before Wall Street opens
1. Wall Street looks set for a quiet start this Monday, cooling off after a week of record highs.
The Dow, S&P 500, and Nasdaq all touched new peaks last week, thanks largely to the Fed’s first rate cut of the year.
But traders are hitting pause, waiting for fresh economic data and Fed speeches later in the week to assess if the rally has legs. It feels like a day for second-guessing, with investors trying to figure out what comes next after a heady stretch of gains.
2. Today’s focus will be on the US advance goods trade balance and speeches of many Fed officials.
These reports are key to understanding how inflation and the broader economy are holding up. If trade numbers worsen or layoffs pick up, it could mean the economy is slowing more than expected, possibly pushing the Fed toward more rate cuts.
However, better-than-expected data might cool market enthusiasm for easing. Traders will watch these numbers closely, as they will shape expectations on the next moves from the Fed.
3. Crypto is taking a beating this Monday. Bitcoin slid below $112,000 amid a massive $1.7 billion liquidation of leveraged positions.
The selloff hit leading coins like Ethereum and Ripple too, rattling nerves in the digital asset space. Some blame technical triggers and fears over upcoming token unlocks, while others see the drop as a natural breather.
Volatility remains high, and while many traders are exiting, opportunistic buyers could zoom in on any dips. The crypto market’s wild swings continue to make headlines, reminding everyone that it’s anything but boring.
4. On the charts, Wall Street indices look like they’ve hit a speed bump after their recent rally. The S&P 500 is testing resistance around 6,800 and support near 6,480. If it slips below that support, traders might brace for a pullback.
The Dow and Nasdaq are holding up, but profit-taking could arrive anytime.
Technical analysts will be glued to these levels, trying to spot whether the market can power through or if we’re about to see some corrective moves. For now, it’s a wait-and-see game.
5. Around the world, markets are mixed as investors process new developments. Asia’s tech-heavy markets showed gains, buoyed by steady monetary policies and strong demand for chips.
Meanwhile, European shares dipped on worries that US visa changes could hurt tech hiring, alongside ongoing inflation jitters.
The global backdrop remains complicated, with optimism from US Fed easing counterbalanced by geopolitical tensions and inflation risks.
Traders across continents are stepping cautiously into the new week, looking for fresh signals to guide their next moves.
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