Dow Jones Industrial Average futures showed minimal movement in premarket trading Monday, maintaining composure after the blue-chip benchmark closed above the 50,000 level for the first time on Friday. The milestone has intensified focus on the market's capacity to withstand signs of a cooling economy.
At approximately 4:52 a.m. Eastern Time, futures contracts tracking the Dow, known as E-minis, were up 46 points, or 0.09%. Meanwhile, S&P 500 and Nasdaq 100 futures edged lower. The Dow concluded Friday's session at 50,115.67, a gain of 1,206.95 points or 2.47%, bringing its year-to-date advance to 4.3%.
Key Economic Reports on Deck
The market's calm may soon be tested. Critical economic data releases, postponed due to a federal government shutdown, are scheduled for this week. According to S&P Global Market Intelligence, the January employment report is now set for February 11, with forecasts anticipating an increase of about 70,000 payrolls and an unemployment rate steady at 4.4%. The Consumer Price Index (CPI) for January will follow on February 13.
These reports are pivotal for shaping interest rate expectations. A stronger-than-expected CPI reading or a robust rebound in hiring could push bond yields higher and force traders to scale back bets on imminent Federal Reserve rate cuts, potentially pressuring equity valuations.
Broadening Rally and Corporate Moves
Friday's surge was fueled by a broadening of the market rally beyond the technology sector. Industrial giant Caterpillar soared 7.1%, providing the largest boost to the price-weighted Dow. Goldman Sachs advanced 4.3%, while Nvidia, which replaced Intel in the Dow in late 2024, climbed 7.9%.
Other notable movers included Kroger, which gained roughly 6% on reports it will appoint former Walmart executive Greg Foran as CEO. The week ahead also features earnings from companies like Kyndryl and Becton Dickinson, alongside scheduled remarks from several Federal Reserve officials.
Market participants continue to gauge the timing of potential Fed policy shifts, with attention on whether incoming chair nominee Kevin Warsh could be in place for the central bank's June meeting. Treasury Secretary Scott Bessent remarked over the weekend that he does not expect the Fed to rapidly shrink its balance sheet, a process that could take at least a year to determine.
