U.S. stock futures were little changed on Sunday evening after the major averages began 2024 with a bearish week, as traders look ahead to inflation data and earnings from major banks in the week ahead.
Dow Jones Industrial Average futures fell 38 points, or 0.1%. S&P 500 and Nasdaq 100 futures rose 0.02% and 0.05%, respectively.
Wall Street had its first losing week in a decade as mega-cap tech stocks like Apple underperformed and Treasury yields rose. The Dow Jones Industrial Average fell 1.5% this week and the S&P 500 slipped 0.6%. The tech-heavy Nasdaq Composite posted its worst weekly performance since September, falling 3.25%.
Apple shares fell about 6% last week. The yield on the 10-year government bond rises again to over 4%.
Markets consolidated after the year-end rally after the Federal Reserve took a dovish stance, leaving investors concerned that stocks were now overbought. A torrid December jobs report and minutes from this week's Fed meeting that suggested heightened uncertainty over the path of rate cuts added to those concerns.
“I think attitudes are probably getting a little too enthusiastic,” said a Friday note from Chris Verrone, head of macroeconomic and technical research at Strategas. “That may need to be addressed through some sort of consolidation or correction in the first quarter.”
Still, Verrone added, “But overall the trend is good and the momentum behind this market is there.”
This week, traders will get more clarity on the central bank's path to rate cuts. The consumer price index for December is scheduled to be released on Thursday and the producer price index on Friday. This will show whether the Fed's efforts to reduce inflation to 2% are having an impact.
The latest corporate earnings season begins Friday with results from major banks Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. The Dow component UnitedHealth also reports. Results from BlackRock and Delta Air Lines are also available.