U.S. stock futures moved lower ahead of the open Monday as investors wait for a blockbuster week that includes the latest Fed meeting, a flurry of heavyweight earnings reports and jobs data.
Futures tied to the S&P 500 GSPC fell 1%, while futures on the Dow Jones Industrial Average fell 0.7%. Contracts on the technology-heavy Nasdaq Composite IXIC declined by about 1.3%.
The yield on the benchmark 10 year U.S. Treasury note went up to 3.557% on Monday morning. The dollar index was down 0.08% to $101.85.
Stocks closed a winning week Friday after data showing stronger than expected U.S. economic growth, while Tesla shares went up over 10% after reporting record quarterly revenue.
All major market averages ended up higher for the week, with the S&P 500 gaining 2.5%, the Dow Jones Industrial Average going up 1.8%, and the technology-heavy Nasdaq Composite climbing north of 4%.
The Commerce Department said on Friday that the personal consumption expenditures price index, excluding energy and food, rose 4.4% from a year ago. Friday s report came after the government reported a better than expected 2.9% gain in gross domestic product for the fourth quarter, boosting hopes that the Federal Reserve may head toward the elusive soft landing scenario.
Fed officials will be in Washington, D.C. Tuesday and Wednesday. The meeting will wrap up with Fed Chair Jerome Powell holding a press conference Wednesday afternoon as he offers signs of the central bank's path forward on rate hikes.
The FOMC's work is not done yet, even though recent declines in inflation and wage growth give it more time to assess the effects of past policy actions. The FOMC will have to execute its transition to smaller rate hikes without furthering expectations that an end to its hiking cycle is imminent, the team at Barclays wrote.
The January jobs report is due to be released Friday morning, and investors will get another clue of the path of the Fed at the end of week. Economists surveyed by Bloomberg expect 185,000 jobs to be added to the economy last month, a decline from 223,000 jobs in December.
It's the biggest week of the fourth-quarter earnings season, with Big Tech results taking the spotlight amid thousands of layoffs in the industry. Yahoo Finance's Dan Howley writes that tech companies are in part to blame for the disaster, despite the already announced job cuts.
The heavy earnings slate contains reports from tech heavyweights Amazon AMZN Apple AAPL Alphabet GOOG and Meta Platforms META Elsewhere in markets, shares of Lucid LCID advanced more than 4% before the opening bell. The electric-vehicle maker went up more than 88% on Friday after it was reported that a Saudi Arabia Public Investment Fund PIF is considering buying its remaining stake in the company.
The Chinese e-commerce site is moving its headquarters out of the country, leading to reports that the new campus could be in Singapore, and the shares of the company fell by 5% in premarket trading on Monday.
According to CoinMarketCap, the price ofBTC-USD has fallen by 1% to $23,168 over the last 24 hours. The largest token is on its way to its best January since 2013, according to Bloomberg, on bets that monetary tightening and the sector's crisis are both receding.