U.S. stock futures dipped early Monday, indicating a cautious start to the week following a disappointing close last week, marked as the Dow Jones Industrial Average's worst since October.
Investors are closely watching for upcoming inflation data, hoping it will provide clearer signals on the Federal Reserve's interest rate path. The Dow, S&P 500, and Nasdaq futures fell by 0.2-0.3%, as Wall Street reflected on last week's losses driven by profit-taking and concerns over high valuations in tech giants, who might be looking into somewhat of a correction over coming market days.
The mixed February jobs report has left investors guessing on the Fed's next moves. While job additions exceeded expectations, a rise in unemployment and modest wage increases suggest possible easing in monetary policy.
Key inflation reports are due this week, including the consumer and producer price indexes, are highly anticipated for further insight into inflation trends, especially after January's data suggested a challenging path to the Fed's 2% inflation target.
Stock markets have been on a huge rally over the past quarters, defying expectations of a potential recession or at best a "soft landing". The market rally has in large parts been driven by the 'Magnificent Seven' tech companies, who have pushed the S&P 500 to new, higher levels.
Furthermore, the stock rally is believed to be linked to the heavy outlays of the US federal government under the scope of the Inflation Reduction Act and other federal programs boosting domestic US production and construction through public funding.
Meanwhile, the price of Bitcoins have sky-rocketed and has even broken the $69,000 watermark that has previously been seen as a point of resistance.