Stock Futures Drift Lower After Last Week’s Tech Selloff

Stocks are poised for a muted open in New York on Monday. (NYSE)

Key Points

• Stock futures drifted lower Sunday night, with Dow Jones Industrial Average futures down 0.2%, S&P 500 futures down 0.1%, and Nasdaq Composite futures down 0.2%.
• Investors are concerned about artificial intelligence spending and shifting expectations for the Federal Reserve’s December interest rate decision.
• The White House removed tariffs on coffee, bananas, and beef; the latest inflation reading was 2.5%.

Stock futures were drifting lower on Sunday night, setting markets up for a muted open after last week’s tech stock selloff.

Shortly after 6 p.m. Eastern on Sunday, Dow Jones Industrial Average futures were down 0.2%, S&P 500 futures were down 0.1%, and Nasdaq Composite futures were down 0.2%.

Investors are wary about artificial intelligence spending, pressuring AI stocks and the tech sector on valuation fears. In addition, expectations for the Federal Reserve’s December interest rate decision keep shifting, and consumers are heading into the holidays wary of inflation.

The White House removed tariffs on imported coffee, bananas, and beef on Friday amid the soaring costs of some grocery items. Kevin Hassett, the director of the National Economic Council, disputed the idea that inflation is has been rising, telling ABC’s This Week on Sunday that the latest inflation reading of 2.5% was close to the Federal Reserve’s 2% target.

Treasury Secretary Scott Bessent told Fox’s Sunday Morning Futures that he was confident the Supreme Court wouldn’t strike down President Donald Trump’s tariffs, which he put in place in April by claiming emergency powers to protect national security.

“Traditionally, the Supreme Court doesn’t interfere with a president’s signature policy,” Bessent said. “I don’t think this ruling is going to go against us.” A ruling on the administration’s tariff policy is expected soon.

This week’s economic highlight will be the release of minutes from the Fed’s October rate meeting on Wednesday.

Last week, the Dow Jones Industrial Average closed up 0.3% and has been up four of the past five weeks, according to Dow Jones Market Data. The Dow is up 10.8% so far this year.

The S&P 500 closed up 0.08% last week and is also up four of the past five weeks. The S&P 500 is up 14.5% this year.

The Nasdaq Composite closed down 0.45% in its second consecutive down week. It’s the largest two-week point and percentage decline since the week ended April 4, after Trump announced his so-called “reciprocal tariffs” on imports from around the world. The Nasdaq is up 18.6% this year so far.

Write to Janet H. Cho at janet.cho@dowjones.com