US stock futures tumbled in pre-market trading on Tuesday after a rally in the technology sector sent stocks higher at the start of the week. Investors are watching the war in Ukraine and preparing for the possibility of new sanctions against Russia.
Contracts on the S&P 500, Dow Jones Industrial and Nasdaq Composite all fell 0.2% pre-open after all three benchmarks closed in the green on Monday. The Nasdaq – which gained 1.9% in the main session – was supported by a 27% rise in Twitter (TWTR(which came after Tesla)TSLACEO Elon Musk revealed it It bought a 9.2% stake in the social media company.
Rohit Kulkarni of MKM Partners told Yahoo Finance Live that Musk is “talking with his money by saying Twitter is an undervalued platform.” “He sees there are things they can do to improve the service, and he’s definitely hinting at a more active role.”
Dan Ives, a Wedbush Securities and Tesla Bull analyst, also told Yahoo Finance that he expects Musk to have an active stake in the social media platform over the coming weeks or months, and that his recent stock grab was “only appetizers. “
Separately, electric car giant Tesla’s Musk contributed to the gains that drove the tech take off during Monday’s trading session. Shares of the electric car maker jumped nearly 6% after it reported vehicle delivery numbers this weekend that were higher than the same period last year.
Tensions from the economic recession eased on Monday after a closely watched portion of the… Treasury yield curve inversion last week Investors are stunned by the possibility of an imminent economic downturn. The phenomenon has a history of recession prediction, with each of the last eight slowdowns dating back to 1969 preceded by a yield curve inversion. As of Monday morning, the yield on the standard 10-year bond remained lower than the yield on the two-year short-term bond.
However, concerns about an economic downturn have not been entirely off the table for strategists.
Nomura Chief US Economist Robert Dent Yahoo Finance Live said Sees the possibility of a ‘moderate recession’
He said, “We think the cumulative risk of a recession between now and the end of 2024 stands at about 35% to 40%. A lot of that just comes from what we think is going to be this very aggressive response from the Federal Reserve to actually control inflation and make sure the labor market actually calms down.” .
And the uncertainty over the crisis in Eastern Europe continues to be a headwind for investors. Jamie Dimon, CEO of JPMorgan, in his widespread message to shareholders He warned that the war in Ukraine is likely to significantly slow down the US economy and the global economy. Specifically in the United States, the bank estimates that the US economy will grow by about 2.5%, which is down from the initial forecast of 3% of the institution’s GDP, with further reductions to expectations about the economic outlook for Russia and Europe.
“We don’t know what its eventual outcome will be, but the hostilities in Ukraine and sanctions against Russia are already having a significant economic impact,” Dimon said, adding that “many sanctions” could be imposed on Russia and lead to greater unpredictability. .
The European Union addressed what appeared to be war crimes in Ukraine on Monday, noting that In a statement that officials“working on more sanctions against Russia” over attacks targeting civilians in the country, including some senior European officials German Defense Minister said they would support Russia’s natural gas ban A move previously excluded from sanctions, as Russia supplies about 40 percent of European gas energy.
7:10 a.m. ET: Stock futures slip, oil rallies after Monday’s tech rally
Here are the main moves in futures trading ahead of Tuesday’s open:
S&P 500 futures contracts (ES = F.): -10.50 points (-0.23%) to 4,567.25
Dow futures contractsYM = F.): -83.00 points (-0.24%) to 34746.00
Nasdaq futures contractsNQ = F.): 37.75 points (-0.25%) to 15126.50 points
raw (CL = F.): +1.28 dollars (+1.24%) to 104.56 dollars per barrel
gold (GC = F.):- $1.70 (-0.09%) to $1,932.30 per ounce
Treasury for 10 years (^ degeneration): 0.00 basis points to produce 2.4120%
6:12PM ET Monday: Futures open little changed after stocks close higher
Here is where the markets were trading before the evening session on Monday:
S&P 500 futures contracts (ES = F.): -2.25 points (-0.05%) to 4575.75 points
Dow futures contractsYM = F.): -14.00 points (-0.04%) to 34,815.00
Nasdaq futures contractsNQ = F.): 9.25 points (-0.06%) to 15155.00
raw (CL = F.): +0.43 dollars (+0.42%) to 103.71 dollars per barrel
gold (GC = F.): + $3.30 (+0.01%) to $1,937.30 per ounce
Treasury for 10 years (^ degeneration): +3.5 basis points to produce 2.4120%
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed