FX.co ★ Futures Pointing To Sharply Lower Open On Wall Street

Stocks are poised for notable weakness at the opening of the trading session on Monday, continuing the decline seen in the last two trading days. Futures for the major indexes indicate a significant drop, with S&P 500 futures plummeting by 4.5%.

An overseas downturn, which led Japan's Nikkei 225 Index to experience its most significant fall since "Black Monday" in October 1987, is expected to influence Wall Street heavily.

The disappointing U.S. jobs report from last Friday has fueled concerns about a potential recession, triggering substantial weakness in international markets.

Shares of Nvidia (NVDA), a leading figure in the AI sector, are set to drop by 13.9% in pre-market trading, reflecting a reversal of the recent AI-driven market surge. Apple (AAPL) is also down 9.9% pre-market after Warren Buffett’s Berkshire Hathaway announced it sold nearly half of its stake in the company.

Later in the morning, the Institute for Supply Management will release its July report on the service sector. The services PMI is anticipated to rise to 51.0 in July from June's 48.8, signaling growth as a reading above 50 indicates expansion.

Friday saw significant declines in stock prices, adding to the steep losses from Thursday’s session. The extended sell-off pushed the Nasdaq to its lowest closing level in two months, while the S&P 500 also reached a near two-month low.

The major averages did manage to end off their session lows but remained firmly negative. By the close, the Nasdaq had dropped 417.98 points or 2.4% to 16,776.16, the S&P 500 had fallen 100.12 points or 1.8% to 5,346.56, and the Dow had tumbled 610.71 points or 1.5% to 39,737.26.

For the week, the major averages declined sharply. The Nasdaq was down by 3.4%, and both the S&P 500 and the Dow slumped by 2.1%.

In overseas markets, the Asia-Pacific region saw a sharp decline on Monday, with Japan’s Nikkei 225 Index plunging by 12.4% and South Korea’s Kospi dropping by 8.8%.

European markets have also seen significant declines. The German DAX Index is down by 3.3%, the UK's FTSE 100 Index has fallen by 2.9%, and the French CAC 40 Index is down by 2.6%.

In commodities trading, crude oil futures dropped by $1.31 to $72.21 per barrel after falling $2.79 to $73.52 per barrel last Friday. Gold futures, which fell $11 to $2,469.80 per ounce in the previous session, have declined by another $63.90 to $2,405.90 per ounce.

On the currency front, the U.S. dollar is trading at 142.10 yen, down from 146.53 yen at Friday’s New York close. Against the euro, the dollar is at $1.0975, compared to last Friday’s $1.0911.