Dow Jones Industrial Average, S&P 500 futures and Nasdaq 100 futures each slid 0.1 per cent
Stock futures dropped Monday night after the major averages took a break from their latest hot streak.
Dow Jones Industrial Average, S&P 500 futures and Nasdaq 100 futures each slid 0.1 per cent.
In after-hours action, shares of GitLab rose 16 per cent. The open-source software development platform beat on top and bottom lines in Q3 and issued strong guidance for the current quarter.
During regular trading on Monday, the Nasdaq Composite dropped 0.8 per cent as tech firms declined across the board. Nvidia and Intel dropped 2.7 per cent and 3.2 per cent, respectively. Alphabet also lost nearly 2 per cent, while Meta shares shed 1.5 per cent. The decline came on the back of five successive positive weeks for the three major averages. The S&P 500 and the Dow slid 0.5 per cent and 0.1 per cent, respectively.
In the meantime, small-cap stocks outperformed the rest of the market, with the Russell 2000 posting a 1 per cent gain. The small-cap index has enjoyed around 7 per cent gain over the past month, raising hopes of a broadening market rally, as traders become confident that the Fed will begin to cut rates next year despite recent hawkish commentary from the central bank.
Nonetheless, investors should temper their expectations for equity gains heading into 2024, as per Jason Heller, senior executive vice president at Coastal Wealth.
Heller said: We believe there are few upward catalysts for stocks given elevated interest rates, a weakening consumer and tempered earnings expectations. We expect stocks to remain in a narrow trading range.
While the Federal Reserve is currently in a “blackout period,” meaning there will be limited comments from Fed officials, Wall Street has more to look toward on the economic front. Traders will be looking toward the latest Job Openings and Labor Turnover Survey report on Tuesday morning.
