U.S. equity futures showed minimal movement early Monday, as investors adopted a cautious stance ahead of a week packed with critical economic updates and commentary from Federal Reserve officials. The Dow Jones Industrial Average futures edged up 46 points, while S&P 500 and Nasdaq 100 futures dipped slightly.
Economic Calendar in Focus
The trading week's primary catalysts are scheduled for later dates: the delayed January employment report arrives Wednesday, followed by the Consumer Price Index (CPI) for January on Friday. Both releases are pivotal for shaping market expectations around the timing of potential interest rate cuts, with the CME FedWatch Tool currently indicating a high probability for a first cut in June.
Monday's domestic calendar is lighter, shifting attention to Treasury Department operations and Fed speakers. The Treasury is set to announce details for a buyback operation, followed by auctions for 3-month and 6-month bills. Federal Reserve Governors Christopher Waller and Stephen Miran are scheduled to deliver remarks in the afternoon, which markets will scrutinize for clues on monetary policy.
Sector Movements and Stock Highlights
Premarket action highlighted volatility in healthcare. Shares of Hims & Hers Health plummeted 14.8% after the company abandoned plans for a low-cost weight-loss pill. Conversely, Danish pharmaceutical giant Novo Nordisk saw its shares surge over 8% in Copenhagen trading on the news.
Elsewhere, Kroger shares gained roughly 6% following a report that it appointed former Walmart U.S. executive Greg Foran as its incoming CEO, a move analysts viewed as bringing immediate credibility to the grocer's leadership.
Market participants also continued to digest last week's sector rotation, which saw money flow out of megacap technology stocks into broader market segments. This shift contributed to a strong Friday rally that pushed the Dow to a record close above 50,000 points.
Underlying Market Tensions
Beneath the surface, anxiety persists in the technology sector, particularly software. The group has significantly underperformed the broader S&P 500 over the past three months, with the launch of new AI-powered tools stirring concerns about the profitability of traditional software business models. Implied volatility for a key software ETF remains elevated near 41%, signaling ongoing investor unease.
The week's tone remains highly data-dependent. Stronger-than-expected wage growth or inflation prints could swiftly alter the rate-cut outlook, potentially triggering renewed volatility, especially in rate-sensitive growth stocks.
