U.S. stock futures moved lower during Asian trading on Monday as investors remained cautious following last week’s losses on Wall Street. Rising government bond yields, Middle East tensions and several major market events kept risk appetite under pressure.
By 02:48 ET (06:48 GMT), S&P 500 Futures were down 0.2% at 7,674.75, while Nasdaq 100 Futures fell 0.7% to 29,176.75. Dow Jones Futures slipped 0.1% to 53,323.0.
Wall Street Ends a Three-Week Winning Streak
The weaker futures followed a difficult week for U.S. stocks.
The S&P 500 lost 1.4% last week, while the Nasdaq declined 2.1%. The Dow Jones Industrial Average fell 0.9%.
As a result, the S&P 500 and Nasdaq ended a three-week winning streak.
Investors have increasingly focused on developments in the U.S. bond market. Higher long-term Treasury yields have placed particular pressure on growth and technology stocks.
Treasury Yields Remain Elevated
The 30-year U.S. Treasury yield climbed to its highest level since 2007 last week, while the benchmark 10-year yield remained near 4.7%.
The 30-year yield was recently trading around 5.24%, while the 10-year yield stood close to 4.70%.
Treasury Secretary Scott Bessent’s decision to double planned purchases of longer-dated government debt initially helped ease pressure on yields. However, the relief proved temporary as yields moved higher again later in the week.
Higher yields can weigh heavily on equity valuations, particularly for technology companies whose valuations depend more on expectations for future earnings.
Iran Tensions Keep Oil Markets in Focus
Geopolitical tensions in the Middle East also remained a significant source of uncertainty for markets.
President Donald Trump has threatened additional sanctions against countries that continue trading with Iran. The move has increased concerns about potential disruptions to global oil supplies.
Brent crude oil moved slightly lower during Asian trading on Monday. However, prices remained above $93 per barrel after gaining more than 6% during the previous week.
Iran has rejected the latest U.S. sanctions threats, while Washington is expected to announce further measures.
U.S.-Canada Tariff Dispute Adds to Market Risks
Trade tensions also returned to investors’ attention after Washington decided to impose 50% tariffs on $20 billion worth of Canadian goods following the breakdown of negotiations.
Canada responded by announcing equivalent retaliatory tariffs, which are scheduled to take effect on September 8.
The escalation adds another layer of uncertainty for markets already dealing with high interest rates, geopolitical tensions and volatile energy prices.
Nvidia Earnings Could Drive Technology Stocks
Investors face several major market catalysts this week.
One of the most closely watched events will be the quarterly earnings report from NVIDIA Corporation (NASDAQ: NVDA) on Wednesday.
Nvidia’s results are expected to provide an important indication of whether the rapid growth in artificial intelligence investment remains strong.
Given Nvidia’s substantial influence on the technology sector and major U.S. stock indexes, its earnings could trigger significant moves across the broader market.
Jackson Hole Takes Center Stage
Attention will also turn to the Federal Reserve’s Jackson Hole symposium, scheduled for August 27-29.
Fed Chair Kevin Warsh is expected to speak during the event, with investors looking closely for clues about the central bank’s next steps on monetary policy and interest rates.
Markets will be particularly sensitive to comments about inflation, economic growth and the future path of borrowing costs following recent volatility.
PCE Inflation Data Could Influence Fed Expectations
Investors will also receive another important inflation update this week with the release of July personal consumption expenditures (PCE) data.
The PCE price index is closely watched by the Federal Reserve and could influence market expectations for future interest-rate decisions.
With Treasury yields elevated, Nvidia earnings approaching and the Jackson Hole symposium ahead, Wall Street could face another volatile week as investors assess the outlook for inflation, monetary policy and global economic risks.
