U.S. futures stocks edged down on Monday, signaling a major index loss in the opening session after a week of inflationary concerns raised in the market.
Futures linked to the S&P 500 were down 0.4%. The broader market gauge was down more than 1.3% last week. Contracts for the Dow Jones and the tech-focused Nasdaq-100 industrial averages were down 0.5 percent on Monday.
As the season closes for a profit, investors remain focused on whether the soon-to-be inflation rate will blow in. The rapid growth in consumer prices could encourage the Federal Reserve to tighten monetary policy, potentially affecting stocks and other assets earned by low interest rates.
Such concerns last week brought the S&P 500 its biggest drop since late February, despite Friday̵7;s recovery. High-tech stocks are extremely vulnerable to inflation concerns: the Nasdaq Composite has fallen for four weeks in a row, the longest loss since August 2019.
“We view this as temporary. But you never know there is a lot here that could take longer, ”said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management.“ The market will still be somewhat volatile. ”