U.S. stock futures fell on Monday following a volatile week for Wall Street, in which the Nasdaq Composite dropped into correction territory.
Dow Jones Industrial Average futures fell by 426 points, or 1.07%. S&P 500 futures and Nasdaq-100 futures dipped 2.84% and 5.48%, respectively.
VIX futures soared over 55% as market sell-off intensifies.
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 where it was one week previously at 4.20%.
The recent pullback in stocks was exacerbated Friday when a disappointing jobs report spurred investor fears the Federal Reserve made a mistake last week when it kept interest rates unchanged, and that the economy is headed toward a recession.
Investors will now watch to see if this move lower can continue. The S&P 500 is 5.7% below its all-time high. The Dow, 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 Monday.
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