Stock Market Slump Continues as Dow, S&P 500, and Nasdaq Futures Drop

NEW YORK — Stock futures fell sharply Monday morning, with Dow Jones, S&P 500, and Nasdaq futures all declining as investors braced for key economic data and earnings reports. The Dow Jones Industrial Average futures dropped 0.3%, while S&P 500 futures fell 0.8% and Nasdaq 100 futures lost 1.1%. The 10-year Treasury yield edged up to 4.78%, adding to concerns about rising interest rates.

The stock market ended last week with significant losses, as the Nasdaq closed below its 50-day moving average for the first time in months. The Dow Jones Industrial Average fell 1.9%, hitting its lowest level since November 5, while the S&P 500 and Nasdaq composite dropped 1.9% and 2.3%, respectively. The small-cap Russell 2000 tumbled 3.5%, reaching a three-month low.

“The market is clearly in a downward trend, and investors are looking to cut exposure,” said Ed Carson, a market analyst. “However, they should also be preparing for the next rally, as opportunities will emerge.”

Tech stocks were among the hardest hit, with Nvidia (NVDA) falling 5.9% for the week and Tesla (TSLA) dropping 3.8%. Nvidia stock fell further Monday morning after the U.S. announced new restrictions on AI and advanced chips. Taiwan Semiconductor (TSM), a key supplier for Nvidia, reported a 58% surge in December sales but saw its stock dip slightly for the week.

Energy stocks showed resilience, with U.S. crude oil futures jumping 3.5% to $76.57 a barrel last week. The Energy Select SPDR ETF (XLE) rose 1%, while the Health Care Select Sector SPDR Fund (XLV) climbed 0.5%. However, the Industrial Select Sector SPDR Fund (XLI) and Financial Select SPDR ETF (XLF) declined 1.05% and 2.6%, respectively.

Apple (AAPL) made headlines over the weekend with reports of plans to redesign the iPhone for the first time in five years and introduce a new smart home hub. The tech giant is also expected to refresh several products, including the iPhone SE and Apple TV.

As earnings season approaches, investors are closely watching companies like JPMorgan Chase (JPM), UnitedHealth (UNH), and Taiwan Semiconductor (TSM) for updates. Key economic reports, including inflation data, are also expected to influence market sentiment in the coming weeks.