United States stock futures edged lower on Sunday night (Monday AEST) following a record-setting week, as investors turned their attention to upcoming earnings from Nvidia and major U.S. retailers.
By 9:50 am AEST (11:50 pm GMT), Dow futures and S&P 500 futures were both down 0.3%, while Nasdaq-100 futures slipped 0.4%.
Nvidia is scheduled to report earnings on Wednesday (Thursday AEST) alongside Target, while Walmart will release results later in the week.
The reports come after U.S. equities reached fresh record highs last week, with the S&P 500 and Nasdaq hitting new peaks and the Dow briefly reclaiming the 50,000 level.
However, momentum faded on Friday as global sovereign bond yields surged. The U.S. 30-year Treasury yield climbed to its highest level in about a year, while United Kingdom 30-year gilt yields reached levels last seen in the late 1990s.
Long-dated Japanese government bond yields also rose sharply.
The moves come amid persistently elevated oil prices and ongoing geopolitical tensions between the U.S. and Iran.
On Sunday, President Donald Trump posted on Truth Social, warning Iran to “get moving” or "there won’t be anything left of them”, as negotiations to end the conflict continue.
Adding to concerns, recent inflation data has dampened expectations of near-term interest rate cuts from the Federal Reserve.
According to the CME Group FedWatch Tool, markets are now pricing in a 40.4% chance of a 25 basis point rate rise by December.
