Futures tracking the Nasdaq 100 index dropped on Monday with big technology stocks dipping ahead of Q1 results later this week. Investors look forward to some clarity on a new tax plan from President Joe Biden.
In premarket trading, Amazon.com Inc, Alphabet Inc, Facebook Inc, and Microsoft Inc, slipped between 0.2% and 0.4%.
Analysts expect Tesla to report a rise in Q1 revenue after markets close following record deliveries for the period. Tesla Inc shares edged higher.
In the S&P 500, 123 companies have published results. Of these firms, 85.4% so far, have reported earnings above analysts’ estimates. A 33.9% jump is forecasted in its profit growth.
Investors await the two-day Federal Reserve meeting starting on Tuesday. Additionally, they look forward to the Q1 gross domestic product numbers later this week. This is to measure the pace of economic recovery.
Dow e-minis added 5 points, or 0.01% at 6:43 a.m. ET. S&P 500 e-minis lost 5.25 points, or 0.13%. Moreover, the Nasdaq 100 e-minis fell 44.5 points, or 0.32%.
Reports last week said Biden would seek to nearly double the capital gains tax to 39.6% for wealthy individuals. That said, market participants are also watching out for any developments on the U.S. president’s tax plan.
Moreover, analysts at Goldman Sachs, Morgan Stanley, and Deutsche Bank have warned of some turbulence ahead. This caution came after a rally that took the S&P 500 and Dow to fresh records this year.
US Futures Largely Unchanged Before Big Tech Reporting Week
U.S. stocks opened largely flat on Monday, with investors gearing up for one of the busiest weeks of Q1 earnings season. This is with key economic data and a Fed meeting thrown in for good measure.
The Dow Futures contract added 20 points, or 0.1% at 7:05 AM ET (1205 GMT). S&P 500 Futures traded 4 points, or 0.1%, lower, and Nasdaq 100 Futures lost 44 points, or 0.3%.
The week ahead is a major one for corporate earnings. Around 180 S&P 500 companies were set to update investors on how their businesses fared during the first three months of the year. This includes 10 Dow Jones Industrial Average components.
The Q1 earnings season got off to a strong start. So far, 86% of companies reported earnings beats.
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