Dow Jones Industrial Average futures fell 100 points, or 0.2%, while S&P 500 futures declined 0.2%. Nasdaq-100 futures were down 0.6%.
Technology stocks came under pressure in premarket trading. The State Street Technology Select Sector SPDR Fund (XLK) fell about 1%, while Coherent and Lumentum dropped around 5% each. Sandisk also declined 5%, while Corning and Seagate Technology slipped about 3% apiece.
The weakness follows a broad market pullback last week. The Dow fell 0.8%, marking its second straight weekly decline, while the S&P 500 and Nasdaq dropped 1.4% and 2%, respectively, snapping three-week winning streaks.
Rising bond yields have remained a key source of pressure on equities. The yield on the 30-year US Treasury bond rose above 5.3% last week, reaching its highest level in nearly two decades. Yields in Japan, France and Germany also climbed to multi-year highs.
Investors are also watching developments around the US-Iran conflict, with concerns that a prolonged conflict could keep oil prices elevated and add to inflationary pressures. Measures announced by Treasury Secretary Scott Bessent to support the long end of the US yield curve provided only temporary relief to markets.
The focus this week will turn to fresh inflation data, with the July personal consumption expenditures (PCE) price index due on Wednesday. Investors will also closely watch the Federal Reserve’s Jackson Hole symposium, where Fed Chair Kevin Warsh is expected to speak.
Corporate earnings will provide another major catalyst, particularly in the artificial intelligence sector. Nvidia is scheduled to report results on Wednesday, followed by Marvell Technology on Thursday. Investors will look to the companies’ results and outlooks for clues on the strength of AI-related spending and the broader technology sector.
Markets will also assess any details from the Trump administration on new economic sanctions against Iran, adding another potential source of volatility to an already eventful week.
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