U.S. stock futures fell on Friday, signaling a quiet end to a strong week on Wall Street, with investors awaiting data on the economy’s performance in early 2021.
Futures contracts linked to the S&P 500 fell 0.7%, indicating that the benchmark may open lower after megacap technology companies pushed it to its fourth record closing of the new year on Thursday. Futures contracts for the Nasdaq-100 technology-focused index lost 0.6% and contracts linked to the Dow Jones Industrial Average fell 0.8%.
Markets appeared to be stalling after the recovery in much of January, with financial managers saying there was no clear catalyst for the decline. Investors have been applauded in recent days for a solid start to the earnings season, although some are concerned that high valuations in market corners will leave stocks vulnerable in the coming months.
“With the lack of new ammunition, people are simply stopping,” said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management.
Investors are cautious about adding new positions ahead of the Federal Reserve’s decision on monetary policy and profits for large companies, including Facebook, Apple and Tesla next week, he added.