On Monday's early trading session, U.S. equity futures continued to weaken, with Nasdaq futures plunging to a 1.1% decline. Meanwhile, S&P 500 futures also retreated notably, falling by 0.75%.

Market Context

This downturn reflects growing investor concerns over recent economic data, particularly amid lingering inflationary pressures and unresolved geopolitical risks that have bolstered market caution.

Technical Outlook

  • Nasdaq futures have broken below critical support levels and could face continued pressure in the short term
  • Should the S&P 500 futures continue to decline, they may test previous lows

Market Forecast

Analysts suggest that unless there is a clear improvement in the macroeconomic environment, stocks may remain volatile in the near term. Investors should closely monitor the Federal Reserve's policy moves and corporate earnings performance.