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U.S. stock index futures edged lower in early trade on Monday as investors trimmed risk in the final two trading days of the year as U.S. Treasury yields and interest rate risks rose.
Stocks ended sharply lower on Friday, with Big Tech stocks leading losses on all three major indexes and pushing the S&P 500 into negative territory for the month, as investors profited from the sector’s outsized performance throughout the year.
U.S. Treasury yields remain elevated amid uncertainty over the Fed’s interest rate path and the impact of President-elect Donald Trump’s planned trade, immigration and tax policies.
In overnight trading, the benchmark 10-year Treasury yield fell from early May highs, but turnover was still slightly above 4.6% before the start of New York trading, with the 2-year Treasury yield at 4.304%.
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The U.S. dollar index, which tracks the greenback against a basket of six global currencies, fell 0.11% to 107.877.
On Wall Street, investors are eyeing another split week, and the lower trading volume that typically comes with it, as markets will be closed Wednesday for New Year’s Day.
Futures contracts tied to the S&P 500, now up 25.2% this year, opened slightly lower by 9 points, while futures contracts tied to the Dow Jones Industrial Average opened 44 points lower.
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The Nasdaq index, which is dominated by technology stocks, rose 31.4% for the year, and Nvidia said it fell 20 points. (NVDA) Tesla (Tesla) and Palantir Technologies Inc. (PLTR) Trading was active in early trading.
boeing company (Bachelor) Shares of South Korea’s Jeju Airlines fell 4.5% after a Boeing 737-800 crashed in Seoul this weekend.
Acting President Choi Sang-mok called for an investigation into the worst crash in South Korea’s history, which killed 175 passengers and almost all six crew members.
In overseas markets, the European Stoxx 600 index fell 0.2% in light trading in Frankfurt, and the British FTSE 100 index fell slightly by 0.21% in London.
Overnight in Asia, Japan’s Nikkei 225 index retreated from a five-month high, closing down 0.96% in Tokyo on the last trading day of the year, putting the benchmark index up about 20% for all of 2024.
Meanwhile, the MSCI ex-Japan regional index fell 0.29% heading into the final trading session.
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