U.S. stock futures are soft, and selling is expected to lead trading in New York. With key events including Nvidia’s earnings and the Jackson Hole symposium scheduled for this week, markets are expected to focus on assessing developments.
S&P 500 futures were soft at 7,680.50, down 7.25, while Nasdaq 100 futures stood at 29,269.75, down 90.50, in the U.S. stock futures market. Dow Jones futures are expected to be ¥23 lower. In the previous session, the Dow ended trading in New York up $517 at $53,277. Although the manufacturing PMI slowed, strength in the services sector helped lift the composite index.
Market participants say buying is being restrained by concerns over fiscal management, while long-term yields are expected to remain volatile and prone to selling. Depending on developments, the selling momentum could weaken. Some expect an upcoming fiscal consolidation program scheduled for release this week to ease downside pressure. In addition, crude oil prices are firming as tensions between the United States and Iran escalate, heightening concerns about inflationary pressure.
Key events scheduled for this week include Nvidia’s earnings on the 26th and the Jackson Hole symposium from the 27th to the 29th. Ahead of these events, the market is expected to shift into a mood of assessing the implications once they are out of the way. Trends in long-term yields and concerns over widening fiscal deficits are also expected to be key market factors.