- Dow Jones futures fall as risk aversion increases amid Federal Reserve concerns.
- US index futures slip as geopolitical risks rise after President Donald Trump weighed options against Iran.
- Market caution grows ahead of major US earnings and key inflation data that could shape Fed policy.
Dow Jones futures fall by 0.52% to around 49,450 during the European session on Monday, while S&P 500 and Nasdaq 100 futures decline 0.58% and 0.82% to near 6,960 and 25,720, respectively. Risk aversion rises on Federal Reserve concerns after federal prosecutors reportedly opened a criminal probe into Chair Jerome Powell over the Fed’s Washington headquarters renovation and whether he misled Congress about the project’s scope, according to the New York Times.
US index futures lost as investors assessed geopolitical risks, with US President Donald Trump reportedly weighing options against Iran. Unrest has entered a third week with hundreds of reported deaths in Iran, while US interventions in South America added to uncertainty.
US stocks could find support from dovish Fed Reserve expectations after softer-than-expected December jobs data. Nonfarm Payrolls rose by 50,000, below November’s revised 56,000 and market forecasts of 60,000, while the Unemployment Rate edged down to 4.4% from 4.6%.
Richmond Fed President Tom Barkin welcomed the drop in the unemployment rate, calling job growth modest but stable, while noting limited hiring outside healthcare and AI and uncertainty over the labor market’s next move. CME Group’s FedWatch tool shows Fed funds futures pricing about a 95% chance of unchanged rates at the January 27–28 meeting.
Market caution grows ahead of major US earnings and looming inflation data that may influence Federal Reserve (Fed) policy. Major US banks led by JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Morgan Stanley, and Goldman Sachs are set to report this week, along with results from Bank of New York Mellon, BlackRock, and PNC Financial.
