02.09.202511:28:24UTC+00US Futures Swing Sharply Lower

U.S. stock futures experienced a notable decline after an extended holiday weekend, reflecting a widespread downturn in global equities. This movement was driven by renewed concerns about the overvaluation in the tech sector and unsustainable fiscal policies in key economies. Futures for the S&P 500 dropped by 0.8%, Nasdaq 100 saw a 1% decrease, and the Dow anticipated a reduction of 270 points. Nvidia's pre-market decline of 2% acted as an indicator of growing unease in the tech industry, as investors began reassessing their substantial stakes in both software and hardware companies due to persistent doubts about the future profitability of artificial intelligence technologies. Concurrently, long-term bonds weakened due to ongoing fears about the expansive fiscal policies advocated by the White House, contributing to a steeper yield curve. Rate futures further solidified expectations for a 25 basis point rate cut by the Federal Reserve this month. In a separate development, Kraft Heinz remained stable in the market following their announcement of a company split into two distinct entities.