Oct 5 (Reuters) – US stock index futures dipped on Monday, as technology stocks eased from record highs, while investors looked for fresh clues on the monetary policy path with Treasury yields and oil prices still elevated.
Chip stocks were a drag in premarket trade, with Intel dropping more than 4%, while Micron Technology dipped 0.3%. Nvidia edged up 0.5%, having touched a record high on Friday.
The tech-heavy Nasdaq rose to fresh peaks in the prior session after weaker-than-expected jobs data dampened expectations for a rate hike from the Federal Reserve at its policy meeting this month.
Traders now see an 80% chance of the Federal Reserve holding interest rates steady this month, though a December rate hike remains largely priced in, according to the CME FedWatch tool.
Benchmark 10-year U.S. Treasury yields were last at 5.28%, steady near multi-year highs amid concerns over deteriorating government finances, heavy debt issuance and elevated energy costs.
Brent crude futures were slightly higher but hovered near the psychologically important $100-a-barrel level as concerns over Gulf oil infrastructure disruptions amid the ongoing US-Israel war persisted. [O/R]
Investors will monitor speeches from top global central bankers including Federal Reserve Governor Christopher Waller at the Istanbul Economic Forum this week for clues on inflation and monetary policy.
At 06:20 a.m. ET, Dow E-minis were down 101 points, or 0.2%, and S&P 500 E-minis were down 14.25 points, or 0.18%. Nasdaq 100 E-minis were down 78.25 points, or 0.25%.
Brokerage Panmure Liberum warned that the equity bull market could be nearing its end, forecasting the S&P 500 will fall more than 35% by end-2027.
Among other stocks, PTC jumped 37% in premarket trading after France’s Schneider Electric agreed to buy the software firm in an all-cash deal valuing its equity at about $22.6 billion.
Cerebras Systems rose 6.6% after OpenAI CEO Sam Altman said the chip designer is a “close partner” and that the companies have “deep engagement pushing on the frontiers of speed.”
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Devika Syamnath)
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