(RTTNews) – Following the substantial rally seen in the previous session, stocks may give back ground in early trading on Monday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.3 percent.
Profit taking may contribute to initial weakness on Wall Street, as traders look to cash in on the strong gains posted last Friday, which lifted the Dow to a new record closing high.
The rally seen during last Friday’s session came as remarks from Federal Reserve Chair Jerome Powell seemed to indicate the central bank is likely to lower interest rates next month.
Overall trading activity may be somewhat subdued, however, as traders look ahead to several key events later this week.
Traders are likely to keep a close eye on earnings news from Nvidia (NVDA), with the AI darling and market leader due to report its second quarter results after the close of trading on Wednesday.
The latest U.S. economic data is also likely to attract attention, as the Commerce Department is due to release a report on Friday that includes the Fed’s preferred readings on consumer price inflation.
Reaction to reports on durable goods orders, consumer confidence and second quarter GDP may also impact trading in the coming days.
Not long after the start of trading, the Commerce Department is scheduled to release its report on new home sales in the month of July. Economists expected new home sales to rise to an annual rate of 630,000 in July after climbing to a rate of 627,000 in June.
After trending lower over the past several sessions, stocks showed a substantial move back to the upside during trading on Friday. The major averages all moved sharply higher on the day, with the Dow reaching a new record closing high.
The major averages ended the day well off their best levels but still posted strong gains. The Dow shot up 846.24 points or 1.9 percent to 45,631.74, the Nasdaq surged 396.22 points or 1.9 percent to 21,496.53 and the S&P 500 jumped 96.74 points or 1.5 percent to 6,466.91.
For the week, the major averages turned in a mixed performance. While the Nasdaq slid by 0.6 percent, the S&P 500 rose by 0.3 percent and the Dow leapt by 1.5 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index climbed by 0.4 percent, while China’s Shanghai Composite Index surged by 1.5 percent.
Meanwhile, most European stocks have moved to the downside on the day, with the U.K. markets closed for a public holiday. While the French CAC 40 Index is down by 0.7 percent, the German DAX Index is down by 0.2 percent.
In commodities trading, crude oil futures are climbing $0.40 to $64.06 a barrel after inching up $0.14 to $63.66 a barrel last Friday. Meanwhile, after surging $36.90 to $3,418.50 an ounce in the previous session, gold futures are edging down $3.30 to $3,415.20 an ounce.
On the currency front, the U.S. dollar is trading at 147.43 yen versus the 146.94 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1696 compared to last Friday’s $1.1718.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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