Markets today: Tech leads drop in U.S. futures before economic data

U.S. equity futures pointed to a weaker opening on Wall Street as traders brace for a slew of economic data that will help determine the path of monetary policy.

Contracts on the tech-heavy Nasdaq 100 fell 0.4 per cent. Nvidia Corp., the stock that’s led a rally across chipmakers in the frenzy over artificial intelligence, slipped as much as 2.1 per cent in premarket. S&P 500 futures dropped 0.3 per cent. In Europe, the Stoxx 600 index edged lower as investors digested the latest earnings. ASM International NV dropped after the chip-equipment maker’s disappointing revenue forecast.

Aside from earnings, attention is on U.S. GDP and inflation numbers and a strong line-up of central bank speakers. Investors are contending with an erosion in expectations for how much the U.S. Federal Reserve and European Central Bank will lower rates. 

“In December, markets priced sizeable rate cuts in 2024, but what’s happened is we have had slightly problematic inflation prints in most parts of the world,” said Guy Miller, chief market strategist at Zurich Insurance Co. “The US economy has done better than what many people expected, the labor market remains tight and wage gains have been higher than what central bankers are comfortable with.”