US stock futures fell on Monday, suggesting that major stock indices will drop from record highs, with investors recording profits as they assess new political and economic uncertainties.
Futures contracts linked to the S&P 500 fell 0.5%, indicating that the benchmark index may fall from the maximum at which it closed on Friday. Contracts linked to the Nasdaq-100 fell 0.4% and those linked to the Dow Jones Industrial Average fell 0.7%.
Shares have risen in recent days with bets that a Democratic-controlled Congress will increase government spending, reinforcing the economic recovery.
Market sentiment is waning at the start of the new week, as investors face a range of risks. On the political front, House Speaker Nancy Pelosi (D., California) said the House could propose President Trump’s impeachment later this week. This is raising concerns that the new grudge in Washington may dampen support for other important measures.
Recent economic data also showed that the recovery of the US labor market stalled in December, ending seven months of job growth and raising concerns that the short-term prospects are getting worse. Covid-19 infection rates also remain high. Experts warned this month of the increase in new cases, hospitalizations and deaths after meetings and travel on the December holiday.