US pre-open: Futures dip ahead of the bell following Dow's surge past 50,000

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Monday following the previous session's massive rebound. As of 1230 GMT, Dow Jones ufutres were down 0.14%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.31% and 0.53%, respectively.

The Dow closed a whopping 1,206.95 points higher on Friday, finishing above 50,000 for the first time in history, as major indices rebounded from a sharp sell‑off earlier in the week, driven by heavy losses across software names and a steep drop in bitcoin as investors shifted into risk‑off mode.

However, futures were slightly lower prior to the open following Friday's bounce, even as bitcoin clawed back some ground ground, sitting just below $70,000 as of 1225 GMT, after briefly sinking below $61,000 the night before.

Saxo's Neil Wilson said: "US equities came under a lot of pressure last week as investors threw tech stocks on the bonfire, but rallied sharply on Friday with Nvidia, AMD and Broadcom each jumping more than 7%. The S&P 500 finished up 2% for the session and the Dow Jones rose 2.5% to close above 50,000 for the first time. Tech had led a selloff in US equity markets after a one-two punch to the AI trade - first Anthropic rolled out a bunch of tools that investors assumed will hurt various software and data analytics stocks. Second, hyperscalers doubled down on AI capex, with the big 4 (Meta, Microsoft, Amazon and Alphabet) committing to around $650bn in spend this year, which reignited fears they are spending too much too quickly without a clear path to payback.

"We've also seen pressure on cryptocurrencies, led by a 50% decline in Bitcoin since its peak in October, while cross-asset volatility has picked up with the melt-up-and-down in precious metals and renewed FX volatility with JPY and USD swings, which taken together have added to pressure on risk assets."

While no market-moving data points will be published on Monday, investors will tune in to speeches from Christopher Waller, Stephen Miran and Raphael Bostic throughout the course of the day.

No major corporate earnings were scheduled for release on Monday.

Reporting by Iain Gilbert at Sharecast.com