Traders work at 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 full of economic data and the Federal Reserve’s latest comments.
Dow Jones Industrial Average futures were down 43 points, or 0.1%. The S&P 500 and Nasdaq-100 moved around a flat line.
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 ended the week with a 2.58% pop.
The gains come even as the yield on the 10-year Treasury note rose above the psychological 4% level at various points last week. A rise in 10-year yields raises borrowing costs for consumers and could signal a decline in investor confidence.
“If you’re afraid of a recession, take the 10-year Treasury,” Sri Kumar Global’s Sri Kumar told CNBC on Friday. “The stock is a losing proposition today and don’t believe it until you see prices drop significantly. [Friday’s] rally”.
Key catalysts this week include Fed Chairman Jerome Powell’s congressional testimony on Tuesday and Wednesday, which will give investors and lawmakers an indication of how the central bank thinks about inflation and its upcoming rate hike campaign.
Traders await Friday’s February jobs report, which showed the economy added 517,000 jobs after January’s blockbuster report. Economists polled by Dow Jones expect 225,000 jobs added last month.
The latest factory orders data will be released after the call on Monday. Economists expect a 1.8% decline in January, according to Dow Jones consensus estimates. This compares with an increase of 1.8% in the previous study.
