By Steve Goldstein
U.S. stock futures drifted lower Monday, as worries about Federal Reserve policy reverberated, on the technology sector in particular.
On Friday, the Dow Jones Industrial Average finished nearly unchanged, but the S&P 500 fell 0.4% and the tech-heavy Nasdaq Composite lost 1%. According to FactSet, growth stocks underperformed value stocks last week by the most since election week 2020.
What’s driving markets
Analysts were still discussing Friday’s payrolls report, which despite a worse-than-forecast reading on nonfarm payrolls did show a decline in the unemployment rate and a rise in wages.
Economists at Goldman Sachs now expect four Federal Reserve rate increases in 2022, instead of their previous call for three, and say a runoff in the balance sheet will commence in July instead of December. “Declining labor market slack has made Fed officials more sensitive to upside inflation risks and less sensitive to downside growth risks,” they said in a note to clients.
The eagerly awaited inflation report is due on Wednesday.
Which companies are in focus?
How are other assets faring?
(END) Dow Jones Newswires
Copyright (c) 2022 Dow Jones & Company, Inc.