US stock futures stumbled on Monday, with the Dow pulling lower as Boeing (BA) shares sold off and uncertainty about the prospects for interest-rate cuts continued to weigh.
Dow Jones Industrial Average (^DJI) futures sank around 0.4%, or 170 points. Futures on the benchmark S&P 500 (^GSPC) and on the tech-heavy Nasdaq 100 (^NDX) were little changed, after all three major stock indexes broke a nine-week winning steak on Friday.
Dow component Boeing’s shares tumbled around 8% in premarket trading after US authorities grounded some 737 Max 9 jets in the wake of a midair fuselage blowout. The incident hit other stocks, with shares in Max 9 operators Alaska Airlines (ALK) and United Airlines (UAL), which operate the jet, losing ground. Fuselage maker Spirit AeroSystems’s (SPR) shares sank almost 18%.
Overall, investors are treading carefully after stocks took a bruising in the first days of 2024 thanks to dwindling expectations for an early rate cut from the Federal Reserve. Strong labor market data, including a hotter-than-expected December jobs report, have intensified the debate around the path of Fed policy.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
This week could bring a catalyst for the market, with earnings reports from big banks and a crucial reading on inflation ahead. The CPI inflation reading is due Thursday, while JPMorgan (JPM), Wells Fargo (WFC), and Bank of America (BAC) will kick off the fourth-quarter earnings season.
One risk is potentially off the table after congressional leaders said Sunday they have reached a $1.59 trillion spending deal aimed at averting a looming government shutdown. The benchmark 10-year Treasury yield (^TNX) clung on above 4% after last week’s gains.
Meanwhile, oil prices were closing in on a 3% drop as investors absorbed Saudi Arabia’s decision to cut key prices of crude supplies to all regions, including its main Asia market.
Click here for in-depth analysis of the latest stock market news and events moving stock prices.
Read the latest financial and business news from Yahoo Finance
