Dow Jones futures slip as tech shares fall to start the week
Dow Jones futures slipped early Monday as technology shares led losses to start the week, with Dow futures down about 11 points while S&P 500 and Nasdaq-100 futures fell 0.1% and 0.5%. Elevated Treasury yields and caution ahead of Nvidia earnings and Jackson Hole kept risk appetite in check.
U.S. equity futures opened the week on the back foot after a difficult stretch for megacap tech, according to CNBC. The State Street Technology Select Sector ETF (XLK) fell nearly 1% in premarket trading, with optical and storage names among the hardest hit.
Key Takeaways
- Dow Jones futures traded about 11 points lower; S&P 500 and Nasdaq-100 futures lost 0.1% and 0.5%.
- Tech led the slide, with XLK down nearly 1% premarket and chip-linked names under pressure.
- Last week the Dow fell 0.8% for a second weekly drop, while the S&P 500 and Nasdaq snapped three-week winning streaks.
- Investors await July PCE inflation data, Nvidia and Marvell earnings, and Fed Chair Kevin Warsh at Jackson Hole.
- Canada tariffs and Middle East tensions added to the cautious tone.
Why are Dow Jones futures slipping to start the week?
Futures weakened as tech sold off after a losing week and as markets stayed pressured by elevated Treasury yields. CNBC reported Coherent and Lumentum down about 5% and 4.5% in premarket, with Sandisk off roughly 4% and Corning and Seagate each down about 3%.
Investor's Business Daily likewise said Dow Jones futures edged lower while S&P 500 and Nasdaq futures fell, with Nvidia earnings, tariffs, and Warsh in focus. For more market-moving headlines in this hub, see Celebrity Breaking News.
How are bond yields and geopolitics weighing on stocks?
Rising global bond yields have weighed on equities. The 30-year U.S. Treasury yield topped 5.3% last week, levels not seen in nearly 20 years, with yields in Japan, France, and Germany also hitting multiyear highs.
Investors also feared a longer U.S.-Iran conflict could keep oil elevated and push inflation higher. Treasury Secretary Scott Bessent announced measures aimed at stabilizing the long end of the yield curve, but the relief was short-lived. Early Monday, the 10-year yield was more than 2 basis points lower near 4.71%, and the 30-year was down more than 2 basis points near 5.25%.
Trade friction added another layer: after Ottawa-Washington talks failed, the Trump administration imposed 50% tariffs on a range of Canadian goods, and Canadian Prime Minister Mark Carney said retaliatory tariffs would start Sept. 8.
What catalysts could move markets later this week?
Wednesday brings the July personal consumption expenditures price index, the Fed's preferred inflation gauge. The same day Nvidia is due to report, with Marvell Technology scheduled Thursday. Bloomberg News, citing sources, said Nvidia has notified clients that servers with Vera Rubin and Blackwell chips will see price hikes of more than 15% on units shipping in early 2027.
The Federal Reserve's Jackson Hole symposium is also on the calendar, where Chairman Kevin Warsh is expected to speak. IBD noted CrowdStrike among several cybersecurity reports in the mix. Elsewhere Monday, WTI fell about 1.62% to $85.65 a barrel and Brent lost about 1.38% to $93.09 as markets awaited new Iran sanctions details from Bessent.
Asia was mixed to soft: Japan's Nikkei 225 closed 0.74% lower and South Korea's Kospi dropped 3.12%, while Australia's S&P/ASX 200 rose 0.49%. SoftBank fell nearly 4% on a planned 1 trillion yen bond issue, and Alibaba plunged after pricing a roughly $10.2 billion share placement to fund AI spending.