Stock Futures Retreat After Dow’s Record
U.S. stock futures dropped Monday, suggesting that the major stock indexes will retreat from last week’s all-time highs after markets in China and Hong Kong plummeted.
Futures linked to the Dow Jones Industrial Average retreated 0.5%. The blue chip index on Friday crossed the 35000 closing milestone for the first time in its history after climbing over 1% last week.
Contracts tied to the broader S&P 500 benchmark fell 0.4% Monday, while futures for the Nasdaq-100 edged down 0.2%, suggesting that large technology stocks may grind lower at the opening bell.
Chinese shares tumbled after Beijing once again took aim at some of the country’s fast-growing listed companies, fueling investors’ concerns about regulatory risks. The Shanghai Composite Index dropped 2.3% by the close of trading, while Hong Kong’s Hang Seng Index shed 4.1% in its biggest one-day rout in over a year.
Cryptocurrencies jumped Monday, with bitcoin rising more than 18% from its 5 p.m. ET level Friday. Investors pointed to short positions being liquidated and speculation that Amazon.com Inc. may be venturing into digital currencies. The price of bitcoin rose to as much as $39,544.29, its highest level since mid June, according to Fintech Zoom.