Dow Jones futures traded 500 points lower on Monday, hinting at a turbulent start for US stock markets later in the day. U.S. equity futures fell after the Dow Jones Industrial, S&P 500 and NASDAQ ended in the red on Friday, marking the third consecutive week of losses and turning negative since the start of the month. Along with Dow futures, NASDAQ and S&P 500 futures were also down with losses ahead of the September US Federal Reserve meeting which is expected to end on Wednesday this week. Investors will be closely following a speech by US Federal Reserve Chairman Jerome Powell later in the week.
The indices turn negative for the month
The Dow Jones started September at 35,360, just short of its all-time high of 35,631 reached on August 16 of this year. However, at Friday’s close, the index was at 34,584, down 2.06% from September 1 and 2.9% from an all-time high.
The S&P 500 was at 4,524 on September 1 and hit an all-time high of 4,545 the next day. At the close of last week, the index fell 2.01% year-to-date and 2.48% from its all-time high to stand at 4,432.
The tech-rich NASDAQ index was at 15,309 at the start of the month, before hitting an all-time high of 15,403 on September 7. Eventually, the index fell at the end of last week to close at 15,043 points. The NASDAQ Composite has slipped 1.73% since the start of the month and 2.33% from its all-time highs.
FAANGM stocks are bleeding
In addition to the major US stock indexes, stocks of large tech companies also came under pressure. All but one of FAANGM’s stocks fell. Facebook’s share price fell 4.5% from its September 1 levels to end the previous session at $ 364.72 per share. In addition, Apple’s stock price has also fallen 4.23% so far this month to now trading at $ 146 per share.
Jeff Bezos’ Amazon has performed better than its counterparts so far this month, down just 0.47%. Amazon’s share price has risen sharply since the end of last month. Netflix is the only FAANGM title to have shown positive results so far this month. Netflix’s share price has climbed 1.25% so far in September, now trading at $ 589 per share.
Internet giant Google was also not spared by investors, as the stock rose to 3.04%, trading at $ 2,816 per share. Meanwhile, Microsoft, despite the strong increase in the previous week, is still down 0.65% for the month.
A meeting of the US Federal Reserve expected
Jerome Powell and other Federal Reserve officials will meet this week and may possibly announce a cut to his bond buying program. Jerome Powell has already said that tapering could start this year. Investors will be watching for further FOMC commentary on this, which could dictate stock market movements.