Traders work on the floor of the New York Stock Exchange (NYSE) on February 27, 2023 in New York City.
Spencer Platt | Getty Images
US stock futures were flat on Monday as Wall Street looked ahead to a week filled with economic data and the latest comments from the Federal Reserve.
Dow Jones Industrial Average futures fell 28 points, or 0.1%. The S&P 500 and Nasdaq-100 hovered around the flatline.
Forex traders are coming off a positive week for the major averages. The Dow Industrials rose 1.75% last week, ending a four-week losing streak. The S&P 500 rose 1.90%, while the Nasdaq topped the week with a pop of 2.58%.
Those gains come even as yields on the benchmark 10-year Treasury note rose above the psychological 4% level at various points last week. An upward movement in the 10-year yield increases borrowing costs for consumers and could signal a fall in investor confidence.
“If you’re afraid of a recession, go get the 10-year Treasury,” Sri-Kumar Global’s Sri Kumar told CNBC on Friday. “Stocks are a losing proposition today, and until you see valuations drop significantly, just don’t trust (Friday’s) rally.”
Important catalysts this week includes congressional testimony Tuesday and Wednesday from Fed Chairman Jerome Powell, who will guide investors and lawmakers on how the central bank is thinking about inflation and its rate hike campaign ahead.
Traders are also expecting the February jobs report on Friday, which follows January’s blockbuster report that showed the economy added 517,000 payrolls. Economists polled by Dow Jones expected 225,000 new jobs last month.
On Monday, the latest factory orders will also be released after the clock. Economists expect a 1.8% decline in January, according to Dow Jones consensus estimates. That compares to a 1.8% gain in the previous reading.