Stocks are anticipated to take a downward turn in the early trading session following last Friday's inconsistent performance. This prediction is backed by major index futures, especially by the S&P 500 futures, which currently indicate a decrease of about 0.3 percent.
Tech stocks might be a contributing factor to the predicted market dip, with the Nasdaq 100 futures registering a drop of 0.5 percent. Shares of tech giants Intel and Advanced Micro Devices are expected to face the brunt following new guidelines introduced by China to replace their microprocessors in government PCs and servers.
The Financial Times reports that as part of China's campaign to replace foreign technology with domestic products, there are stricter government procurement guidelines. These new regulations aim to replace Microsoft's Windows operating system and foreign-made database software with locally-produced alternatives.
Another potential factor leading to a bearish sentiment may be the recent adjustments in the Atlanta Federal Reserve's forecasts. Raphael Bostic, the President, has scaled back from his previous prediction of two interest cuts this year to just one. Last week's announcement suggested that Fed officials are still anticipating three rate cuts this year.
However, trading might be relatively subdued as traders anticipate key economic data releases in the coming days. Reports on durable goods orders, consumer confidence, and pending home sales will be scrutinized. A report on personal income and spending, which includes readings on inflation favored by the Fed, will be released on Good Friday, when markets are closed.
The Commerce Department is due to release its February report on new home sales shortly after the beginning of trading. Experts predict a growth to an annual rate of 680,000 in February, following January's leap to a rate of 661,000.
Friday's market performance was relatively uneventful after a bullish run, with major averages ending mixed. The Nasdaq edged up 0.2 percent, reaching a record high of 16,428.82, while the S&P 500 slipped 0.1 percent to 5,234.18, and the Dow fell 0.8 percent to 39,475.90. Regardless, the week saw a strong performance with the Nasdaq, S&P 500, and Dow rising 2.9 percent, 2.3 percent, and 2.0 percent respectively.
Monday's trading sees most Asia-Pacific regional stock markets on a downward trend. Japan's Nikkei 225 Index dropped 1.2 percent, and China's Shanghai Composite Index shrunk by 0.7 percent. Most European stocks followed suit, with the French CAC 40 Index and the U.K.'s FTSE 100 Index dropping 0.3 percent and 0.5 percent, respectively, while the German DAX Index remained largely unchanged.
In commodities trading, crude oil futures are making a slight recovery to $80.92 a barrel, after dipping to $80.63 a barrel last Friday. After dropping $24.70 to $2,160 an ounce in the previous session, gold futures are experiencing a boost, climbing $16.30 to $2,176.30 an ounce.
In terms of currency, the U.S. dollar is trading at 151.18 yen, slightly lower than the 151.41 yen it fetched at the close of New York trading last Friday. Against the euro, the dollar is trading at $1.0828, a mild increase from last Friday's $1.0808.
