Dow Jones futures rose 0.2% Sunday evening after the index dropped 1.7% last week to a three-month low, while the Nasdaq gained ground. Traders are also watching a shortened Camp David trip by President Trump and Treasury-China talks ahead of a planned Trump-Xi meeting on Sept. 24.
Dow Jones futures climbed 0.2% Sunday evening, with S&P 500 futures up 0.25% and Nasdaq-100 futures up 0.3%. The move follows a mixed week in which the Dow fell solidly to a three-month low while the broader market was mixed.
Dow lags as Nasdaq holds up
The Dow Jones Industrial Average lost 1.7% last week, hitting a three-month low alongside the small-cap Russell 2000, which shed 1.5%. The Nasdaq rose 0.7% over the same stretch, while the S&P 500 dipped 0.1%, with both finishing above their 50-day moving averages.
Trading swung within the week itself. AI stocks tumbled Monday after some big AI leaders called for a development slowdown, though software surged as a result. Stocks then slumped Wednesday on the Federal Reserve's rate hike and hawkish guidance, before rebounding broadly Thursday. The indexes finished narrowly mixed Friday as the 10-year Treasury yield moved back toward 19-year highs.
Yields and oil add pressure
The 10-year Treasury yield rose two basis points to 4.995%, while the two-year yield, closely tied to the Fed rate outlook, jumped 10 basis points to 4.74%. The 30-year yield moved the other way, falling three basis points to 5.33%. U.S. crude oil futures rose 0.25% to $100.30 a barrel last week, though prices came well off weekly highs as Saudi supply disruptions appeared less severe than first thought.
Geopolitics stays in focus
President Trump cut short a Camp David visit on Saturday to return to the White House, and the State Department issued security alerts for the Middle East citing Houthi attacks on Saudi Arabia's capital. Treasury Secretary Scott Bessent and China Vice Premier He Lifeng held talks Sunday in New York on trade and AI, ahead of a planned Sept. 24 meeting between Trump and Chinese President Xi Jinping.
With earnings and economic data light this coming week, the Mideast conflict and its effect on oil prices and Treasury yields remain front and center.
Source: Investor's Business Daily
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