Stock futures fall after equities rally to record high

The US stock futures fell in a downbeat start to the trading week after equity markets rallied towards their longest winning streak in 10 months on Friday.

The S&P 500 futures fell 0.6% after the benchmark index marked its fourth week of gains in the last trading session, recouping half of its bear market losses this year. The Dow Jones Industrial Average fell 150 points, or about 0.5%, and the Nasdaq Composite was off by 0.4%.

There was a slowdown in economic activity across the board last month, according to data out of China on Monday. Retail sales, industrial output and investment in the world have come in lower than expected in July, according to the world's second largest economy.

China s central bank unexpectedly cut its key interest rate in an effort to turn lagging economic growth around as President Xi Jinping seeks re-election.

China is planning to hold a face-to- face meeting between Xi Jinping and President Biden in Southeast Asia this fall, a trip that would mark their first in-person meeting since Biden was inaugurated, according to the Wall Street Journal.

Oil futures tumbled due to concerns about demand in China and the possibility of higher exports from Iran. U.S. West Texas Intermediate and Brent crude oil each fell 4.5% to $87.97 and $93.66 per gallon.

After a series of better-than-expected economic releases renewed optimism on Wall Street, investors in the U.S. cheered on the summer's rally. Some strategists don't believe the market rebound will be successful due to the risks associated with inflation and monetary tightening.

The macro, policy and earnings set-up is much less favorable for equities today, according to Michael J. Wilson, Morgan Stanley spokesman. The bear market is incomplete and the risk reward is unattractive. The Commerce Department is going to release its key monthly report on retail sales Wednesday and earnings on Wednesday, and investors look forward to a busy week for retail, with the Commerce Department set to release its key monthly report on retail sales Wednesday and earnings due to Walmart WMT Target TGT, the Home Depot HD and other consumer giants.