The main U.S. index futures hint at a possible drop on Monday following a volatile session last Friday. The technology sector could see some negative impact, as suggested by a 0.5 percent decline in the Nasdaq 100 futures.
Tech giants Intel (INTC) and Advanced Micro Devices (AMD) may face some strain due to a report from the Financial Times stating that China has issued new guidelines to gradually eliminate these companies' microprocessors from government-owned computers and servers. This move is part of China's intent to replace imported technology with domestically produced alternatives. The stricter procurement guidelines also propose to push aside Microsoft's (MSFT) Windows operating system and foreign database software in favor of local choices.
Recent news about Atlanta Federal Reserve President Raphael Bostic reducing his interest rate cut forecast for this year may also instigate some negative market sentiment.
Activity in the trading sector may reduce as traders anticipate upcoming key economic data, such as reports concerning durable goods orders, consumer confidence, and pending home sales. Crucial data on personal income and spending, accompanied by inflation insights preferred by the Federal Reserve, will be released during the closed markets on Good Friday.
Following a surge over a series of sessions, Friday's trading was quite muted, with mixed results noted across major averages. The Nasdaq edged up while the S&P 500 dropped marginally, and the Dow underwent a significant decline. Regardless, major averages reported sizeable heights for the week, led by the Nasdaq's 2.9 percent spike.
Early trading witnessed a slight decrease due to profit booking. Yet, a positive outlook for interest rates post the Federal Reserve's monetary policy announcement boosted optimism in the markets.
Chip producer Nvidia (NVDA) played a pivotal role in the tech-heavy Nasdaq's rebound by surging 3.1 percent, ending at a record high. On the other hand, athletic apparel retailer Lululemon's (LULU) shares plummeted despite exceeding fiscal Q4 results estimates but disappointing guidance. Telecommunication along with gold, commercial real estate and airline stocks also recorded losses.
Crude oil futures are showing a rise after a decrease over the last session; gold futures are also witnessing an uptick after a major drop during the previous session. In the currency market, the U.S. dollar is experiencing a slight decline against the yen and trades up against the euro.Most Asian stocks experienced a decline on Monday following a week filled with central bank meetings. Market hesitation was primarily due to the heightening trade war between the U.S. and China and the Atlanta Federal Reserve President Raphael Bostic cutting his forecast to a single rate cut this year.
The Japanese Yen halted its drop amidst the fear of potential interference in the currency markets by authorities. The Yuan rebounded notably against the dollar following signals from China's central bank supporting the managed currency by setting a stronger rate.
Gold saw a slight increase in Asian trading, and oil prices also rose following a three-day fall due to signs of market tightening influenced by sanctions, geopolitical risks and supply cuts by OPEC+.
Chinese markets witnessed fluctuations and ultimately closed significantly lower following Beijing's announcement to phase out U.S. microprocessors from Intel and Advanced Micro Devices in government-owned computers and servers. The new regulations aim to replace Microsoft's Windows operating system and foreign-made database software with domestically-sourced alternatives, reported the Financial Times.
Japanese markets suffered a serious blow as the Yen's decline was stalled by feared currency intervention from authorities. Conversely, Australian markets deviated from the regional trend and closed higher, buoyed by the performances of mining and bank stocks.
In Europe, stocks generally performed poorly on Monday, just ahead of a brief week of trading before the long Easter weekend. This downtrend seems steered by similar factors affecting Asian markets - ongoing U.S.-China trade tensions and the Atlanta Federal Reserve's forecast of a single rate cut this year.
Among the key losers were SKF, a Swedish bearing, and seal manufacturer that joined a new research and innovation project and faced a stock decline. Shares of Delivery Hero SE, the German food delivery company, also fell as its Chief Financial Officer, Emmanuel Thomassin, will be leaving the company at the end of September.
In contrast, the real estate group SBB saw a surge in their shares following their announcement to buy back debt at a 60% discount to the original value. Similarly, Gamma Communications enjoyed a boost in its share price after it reported increased pre-tax income for the full year, primarily driven by improved revenue from its Gamma Business and Gamma Enterprise segments.The Department of Commerce is set to publish its new home sales report for February at 10 a.m. ET. Economists are forecasting a significant increase in new home sales, projecting an annual rate of 680,000, up from January's rate of 661,000.
At 10:30 a.m. ET, Lisa Cook, a Governor of the Federal Reserve Board, is scheduled to present on "The Dual Mandate and the Balance of Risks" at an event hosted by Harvard University titled "Ec10b: Principles of Economics Lecture."
Likewise, at 1 p.m. ET, the Treasury Department is set to reveal the outcomes of the current month's auction of two-year notes, which are valued at $66 billion.
Focusing on stocks, medical technology company Masimo (MASI) is making significant gains in pre-market trading. The surge follows the board's authorization for its management to assess a potential split of its consumer business.
Foot Locker (FL), a sportswear and footwear retailer, may also see an initial surge on the strength of an upgrade from Evercore ISI. The company's stock rating has been upgraded from 'In-Line' to 'Outperform.'
By contrast, Scotts Miracle-Gro (SMG) stocks may experience a downward trend. This prediction follows a downgrade from Raymond James, moving the lawn care company's stock from 'Strong Buy' to 'Market Perform.'
