synopsis

New York Fed President John Williams and Fed Chair Philip Jefferson are due to speak before the market opens on Monday.

U.S. stock futures were in reverse gear in the early Asian session on Monday, suggesting a lower open for Wall Street stocks. The negative sentiment comes after a week when the market rode high on several upside catalysts.

The strong run-up could make traders wary, with Moody's downgrading the U.S.'s credit rating due to rising fiscal deficits potentially causing some uneasiness. Treasury Secretary Scott Bessent, however, has shrugged off the development, as he expressed confidence in growing GDP more than debt.

As of 11:03 p.m. ET on Sunday, the Nasdaq 100 futures slid 1.09%, while the S&P 500 and the Dow futures fell 0.80% and 0.55%, respectively. The Russell 2000 futures moved down 0.84%.

Crude oil futures edged lower in overnight trading after ending the past week slightly higher amid volatility. On the other hand, gold futures rallied, holding around the $3,225 level.

The U.S. 10-year yield edged up to 4.479%.

In the currency market, the U.S. dollar was weaker against most major currencies. 

The week's economic calendar is loaded with speeches of Federal Reserve officials. The spotlight will also likely be on S&P's May flash manufacturing and services sector activity readings, a couple of April housing market reports, and the weekly jobless claims data.

New York Fed President John Williams and Fed Chair Philip Jefferson are due to speak before the market opens on Monday.

The Conference Board's leading economic index for April is due at 10 a.m. ET. On average, economists expect a negative 0.9% following a negative 0.7% in the previous month.

Agilsys (AGYS) and Trip.com Group (TCOM) are among the key earnings to watch for the day.

Stocks closed sharply higher for the week ended May 16, reversing from the previous week's slide, with the U.S.-China trade deal setting the tempo for the week. 

Tamer inflation reports and multi-billion dollar deals flowing out of the Middle East following President Donald Trump's state visit to the region also provided the market a shot in the arm.

The S&P 500 Index ended the week up 5.3%, with the broader gauge now up for five straight sessions, and the Dow Jones Industrial Average gained 3.4%. Both the indices are now in the black for the year.

The Nasdaq Composite outperformed with a 7.2% jump.

Commenting on the market move, Creative Planning Chief Market Strategist Charlie Bilello said, "The S&P 500 is up over 19% in the last 27 trading days, one of the greatest comebacks in market history."

The Invesco QQQ Trust (QQQ) ETF, an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index, is up 2.2% so far this year, and the SPDR S&P 500 ETF (SPY) added 1.7%

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is up 0.8% while the iShares Russell 2000 ETF (IWM) is down 4.8%.

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