U.S. stock futures were trading lower early Monday, following the record high of the Dow Jones Industrial Average (DJIA) on August 22. Stocks had rallied on Friday after Federal Reserve Chairman Jerome Powell hinted at the possibility of easing monetary policy at the September meeting. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the DJIA were down 0.16%, 0.13%, and 0.15%, respectively, at 4:50 a.m. EST on August 25.
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During Friday’s regular trading session, all three major indices ended higher, driven by Powell’s comment that current economic conditions “may warrant” interest rate cuts in the coming months. The Dow Jones closed up 1.89%, while the Nasdaq Composite and the S&P 500 posted gains of 1.88% and 1.52%, respectively.
Stocks ended the week on a strong note, as Friday’s rally erased earlier losses and lifted markets higher. The Dow climbed 1.53% to set a new record high, while the S&P 500 gained 0.27% for the week. However, the Nasdaq 100 fell 0.90%, as Friday’s rebound was not enough to offset a broader sell-off in major AI-related stocks earlier in the week.
Looking ahead, investors are eagerly awaiting chip giant Nvidia’s (NVDA) results on August 27. Additionally, traders will focus on Friday’s release of the July Personal Consumption Expenditures (PCE) price index, a key inflation indicator closely watched by the Federal Reserve. Today, reports on building permits and new home sales are due, which signal the health of the U.S. housing market.
On the earnings front, several semiconductor and cybersecurity companies are expected to report this week. Notable names include Marvell Technology (MRVL), Dell (DELL), Snowflake (SNOW), and CrowdStrike (CRWD).
Meanwhile, the U.S. 10-year Treasury yield was up, floating near 4.26%. WTI crude oil futures were trending higher, hovering near $67.82 per barrel as of the last check. Additionally, the Gold Spot U.S. dollar price decreased to nearly $3,411 per ounce on Monday.
Elsewhere, European stocks opened mostly lower as traders weighed the economic outlook following Powell’s hint at potential monetary easing. Markets are also awaiting key inflation data from several European countries later this week.
Asia-Pacific Markets Traded Higher Today
Asia-Pacific markets traded higher today, supported by a rally in Chinese and Hong Kong stocks. Chinese real estate shares climbed after Shanghai relaxed homebuying rules for qualifying families.
Hong Kong’s Hang Seng index advanced 1.94%. In China, the Shanghai Composite gained 1.51%, while the Shenzhen Component rose 2.00%. Meanwhile, Japan’s Nikkei rose 0.41%, and the Topix increased by 0.15%.