U.S. stock index futures fell in Sunday evening trading as persistent fears of an economic slowdown weighed on investor sentiment. S&P 500 Futures dropped 0.9% to 5,329.0 points, while Nasdaq 100 Futures declined 1.4% to 18,302.0 points by 19:28 ET (23:28 GMT). Meanwhile, Dow Jones Futures slid 0.5% to 39,680.0 points.
Wall Street Grapples with Slowdown Fears
The drop in futures followed a tough week for Wall Street, where fears of a slowing economy battered stocks. A series of weak economic reports—particularly concerning business activity and the labor market—sparked concerns that the Federal Reserve's prolonged high interest rates might be dragging the economy down, dimming hopes for a soft landing.
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These concerns were heightened on Friday after the nonfarm payrolls report for July significantly missed expectations, signaling a notable cooling in the labor market. While the disappointing data fueled speculation that the Federal Reserve might cut interest rates sooner than anticipated, it did little to boost appetite for riskier assets.
Technology stocks were hit especially hard, with the NASDAQ Composite falling 2.4% to 16,776.16 points on Friday. The index has now lost over 10% from its peak earlier this year. This tech sell-off contributed to the S&P 500's 1.8% decline to 5,346.56 points, while the Dow Jones Industrial Average, less tech-heavy by comparison, fell 1.5% to 39,737.26 points.
Looking Ahead: Economic Indicators and Earnings Reports
After last week's Federal Reserve meeting, where rates were left unchanged but a potential September cut was hinted at, investors will be keenly watching for further signals from several Fed speakers this week.
Economic data releases will also be in focus, with the Institute of Supply Management's non-manufacturing purchasing managers index set to be released on Monday.
In the corporate earnings realm, industrial giant Caterpillar Inc (NYSE) and ride-sharing leader Uber Technologies Inc (NYSE) are scheduled to report their results on Tuesday. Super Micro Computer Inc (NASDAQ), which has seen a significant valuation surge due to the AI boom, will also release its earnings on Tuesday. Additionally, media titans Walt Disney Company (NYSE) and Warner Bros Discovery Inc (NASDAQ) are slated to report on Wednesday.
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