Traders work on the floor of the New York Stock Exchange during afternoon trading on August 02, 2024 in New York City. Michael M. Santiago | Getty Images
Traders work on the floor of the New York Stock Exchange during afternoon trading on August 02, 2024, in New York City. Stocks closed low after the July jobs report showed a slowdown in the labor market. The Dow Jones closed with a loss of over 600 points after being nearly down 1000 points, and Nasdaq closed at a loss of over 400 points.
U.S. stock futures fell Sunday night following a volatile week for Wall Street, during which the Nasdaq Composite dropped into correction territory.
Dow Jones Industrial Average futures fell by 300 points, or 0.8%, while S&P 500 futures and Nasdaq-100 futures dipped 1.1% and 1.7%, respectively.
Wall Street is coming off a brutal week for the major averages. On Friday, the Nasdaq capped a third straight week of losses, bringing the tech-heavy index down more than 10% from a record set last month. The S&P 500 also posted a third straight losing week, down 2% for the week. Even the Dow Jones Industrial Average, which had been outperforming, snapped a four-week win streak, falling 2%.
Treasury yields tumbled as well. The benchmark 10-year note on Friday yielded 3.79%, down from 4.20% the previous week.
The recent pullback in stocks was exacerbated Friday when a disappointing jobs report spurred investor fears that the Federal Reserve made a mistake last week by keeping interest rates unchanged, and that the economy is headed toward a recession.
Investors will now watch to see if this downward move continues. The S&P 500 is 5.7% below its all-time high, and the Dow is off by 3.9%.
“I think we’re in that corrective period, but we still think the bull market trend is intact,” Keith Lerner, co-chief investment officer at Truist Wealth, told CNBC’s “Closing Bell” on Friday. “It’s just going to take a little bit to get through this kind of choppier period.”
Apple will also be closely watched when the market opens Monday after Warren Buffett’s Berkshire Hathaway dumped nearly half of its stake in the iPhone maker.
Economic data due out Monday include the July ISM Services PMI, a measure of the performance of U.S. services companies that’s set to show a rise to 50.9, up from 48.8 previously.
Investors may glean some insight into how the Fed may proceed with interest rates in the coming week. San Francisco Fed President Mary Daly will be speaking at the Hawaii Executive Collaborative after the close on Monday.
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