Quick overview

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Wall Street was once again uneasy about frothy tech stocks and stretched government budgets. Gold briefly reached an all-time high as global bonds staged a wide retreat. Building on the tech-driven selloff that ended last week, futures for the S&P 500 fell 0.7 percent.

Nvidia fell 1.5 percent, the largest premarket loss among the Magnificent Seven. The Nasdaq 100 experienced a 0 percent decline. The dollar is headed for its first advance in six days after posting its largest gain since July.

30-year Treasury yields increased five basis points to 4 percent, while that of their UK counterparts reached their highest level since 1998. In light of a 10-year debt sale that is expected to generate a record £14 billion, Britain’s need to finance a growing budget deficit came into sharp relief.

The value of the pound dropped by over 1%.

This year’s record-breaking stock rally is about to enter a pivotal phase with markets awaiting the outcome of bets on the first Federal Reserve rate cut of 2025 this month and the continuation of expectations for further easing.

Tariff tensions and anxieties that President Donald Trump’s attacks on the Fed may increase inflation are further factors contributing to the pressure.
The August surveys of manufacturers and service providers by the Institute for Supply Management are the first of many data points that are due this week.

The nonfarm payrolls report on Friday is predicted to reveal the weakest stretch of job growth since the pandemic began in 2020, with a fourth consecutive month of less than 100,000 new jobs. Swaps indicate a 90% chance of a quarter-point rate cut by the Fed later this month, with three more such actions anticipated by June.