US stock futures declined on Friday, as a sign of a strong week on Wall Street awaited data on how investors performed in the economy in early 2021.
The futures numbers for the S&P 500 fell 0.7%, indicating that the benchmark gauge may open lower after megacap technology companies close to their fourth record on Thursday of the new year. Technology-focused Nasdaq-100 index futures declined 0.6% and contracts related to the Dow Jones Industrial Average declined 0.8%.
After rallying for several days in January, the markets appeared to be stalling, with money managers stating there was no clear catalyst for the decline. Investors have been happy with a solid start to the earnings season in recent times, though some are concerned that higher valuations in market corners will weaken the stock in the coming months.
“With the lack of new ammunition, people are just shutting down,” said Lars Skovgaard Anderson, investment strategist at Danske Bank Wealth Management.
He said investors are wary of adding new positions next week to the Federal Reserve’s monetary policy decision next week and earnings decisions from major companies including Facebook, Apple and Tesla.