US futures fell on Monday, signaling a disarmed opening for major indices rising to records ahead of a busy week of corporate revenue and economic data.
S&P 500 futures fell 0.1% after the stock benchmark rose to its 20th-highest position in 2021. On Friday, Dow Jones Industrial Average Contracts, which also closed last week at a record level, they fell by 0.1%. Futures for the technologically strong Nasdaq-100 index fell more than 0.2%.
The shares of the tech giants have taken control of the US stock rally in the last month, contributing to the rise of major indices to a series of historical highs. Investors’ concerns about holding shares sensitive to rising interest rates have been allayed by a decline in US government bond yields. Some say the transition to economically sensitive sectors has gone too far at a time when major economies, such as the European Union and India, are facing new outbreaks of coronavirus.
Investors said on Monday that they are positioning themselves for the start of the earnings season, as well as data that will help assess whether a future inflation explosion will prove to be transitory. Inflation data, which will be released on Tuesday, should show that consumer prices rose in March.
“All of this needs to be delivered in a Goldilocks way enough for the current earnings to remain intact,” said Edward Park, chief investment officer at UK investment firm Brooks Macdonald. There is “a bit of a question mark in the markets that just says: we see strong gains; is that really so? “Mr. Park said.