Stock futures fall ahead of blockbuster week

US stocks fell Monday as investors await a big week with the latest Federal Reserve Board meeting, a slew of earnings reports and employment data.

The S&P 500 (^GSPC) dropped 1.3% and the Dow Jones Industrial Average (^DJI) dropped nearly 0.8%. The technology-focused Nasdaq Composite (^IXIC) fell about 2%.

The benchmark 10-year Treasury yield rose to 3.546%. Monday morning. The Dollar Index gained 0.32% to $102.26.

The stock market ended a strong week on Friday after data showed US economic growth was stronger than expected. The S&P 500 rose his 2.5%, the Dow Jones Industrial Average rose his 1.8%, and the Nasdaq rose above his 4%, with all major market averages closing higher this week. .

The Commerce Department said Friday that its price index for personal consumption expenditures, excluding energy and food, rose 4.4% from a year earlier. Friday’s report comes a day after the government reported a better-than-expected 2.9% increase in fourth-quarter gross domestic product, and could point the Federal Reserve toward an elusive ‘soft landing’ scenario I have high expectations.

Fed officials will meet in Washington DC on Tuesday and Wednesday. The meeting will wrap up Wednesday afternoon with Fed Chairman Jerome Powell holding a press conference, giving signs of progress for the central bank on rate hikes.

“Even if the recent slowdown in inflation and wage growth has allowed time to assess the effectiveness of past policy actions, the FOMC’s work is not yet complete. “It is about implementing a transition to smaller rate hikes without furthering expectations that the end of the economy is imminent,” the Barclays team wrote.

At the end of the week, investors should have another clue about the Fed’s performance as the government’s January jobs report is due out on Friday morning. Economists surveyed by Bloomberg expect the economy added 185,000 jobs last month, slowing from December’s 223,000 job addition.

Federal Reserve Chairman Jerome H. Powell attends a panel at the Central Bank Symposium held at the Grand Hotel in Stockholm, Sweden, January 10, 2023. TT News Agency/Claudio Bresciani/via REUTERS ATTENTION EDITORS – THIS IMAGE IS PROVIDED BY A THIRD PARTY. Sweden out. No commercial or editorial sales in Sweden.

Meanwhile, in the biggest week of the fourth quarter earnings season, with thousands of job cuts in the industry, Big Tech results are in the spotlight. Yahoo Finance’s Dan Howley writes that tech companies are partly to blame for the disaster, despite already announced job cuts.

Big earnings included reports from tech giants Amazon (AMZN), Apple (AAPL), Alphabet (GOOG) and Meta Platform (META).

Elsewhere, Lucid (LCID) shares fell nearly 9%. The electric car maker surged more than 88% on Friday after speculation that the Saudi Public Investment Fund (PIF) was considering buying the remaining stake in the company.

Alibaba (BABA) shares fell 6% on Monday after reports the Chinese e-commerce site was moving its headquarters out of the country, suggesting a new campus could be in Singapore, reportedly. .

Shares of SoFi Technologies (SOFI) rose 12.5% ​​on Monday after the digital financial services company announced positive earnings guidance for the year ahead.

Shares of Johnson & Johnson (JNJ) fell nearly 4% Monday after an appeals court said bankruptcy could not be used to end a cancer lawsuit.

In the cryptocurrency market, Bitcoin (BTC-USD) has fallen more than 1% to $23,168 over the past 24 hours, according to CoinMarketCap. But the largest token is headed for its best January since 2013, according to Bloomberg, betting that both monetary tightening and the sector’s crisis are receding.

Dani Romero is a reporter at Yahoo Finance. follow her on her twitter @daniromerotv

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