Stocks slipped as U.S. investors returned from the July 4 holiday. Concerns around inflation and recession continue to dominate, though there was positive news around the potential for new U.S. import policy to tackle higher prices.
Futures for the Dow Jones Industrial Average retreated 150 points, or 0.48%, after the index ended 321 points higher last Friday at 31,097. S&P 500 futures signaled a start 0.54% into the red with the tech-stock-heavy Nasdaq poised to fall 0.67%.
Concerns around the risk of recession continue to loom large as central banks such as the Federal Reserve move to fight multidecade high inflation with higher interest rates, risking spurring a slowdown by denting economic demand. A wave of economic data in the week ahead—including the U.S. nonfarm payrolls report on Friday—as well as minutes from the Fed’s June meeting will be closely watched as investors focus on monetary policy expectations.
“It’s been a quieter 24 hours for markets thanks to the U.S. holiday, but the market remains confused about how to price fixed income in an environment where a recession is coming at some point,” said Jim Reid, a strategist at Deutsche Bank.
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