Futures on Wall Street declined as trading resumed on Sunday evening local time after the historic commodities meltdown last week and questions being raised over the sustainability of the AI trade.
After plunging as much as 250 points, the Dow futures are currently trading 150 points lower. The S&P 500 futures are down 35 points, while the Nasdaq futures are trading with losses of over 210 points on Sunday evening Eastern Time.
Wall Street had managed to eke out gains for the month of January, despite the S&P 500 declining for the third day in row last Friday. A sell-off in Chipmakers had led to the Nasdaq underperforming its peers.
The focus though remains on commodities. Spot Silver prices are down another 6% as trading resumed. Prices have now plunged below the $80 mark from its record high levels of over $120 an ounce. Bitcoin traded near the $77,000 mark, having corrected 35% from its own peak. Gold too trades 3% lower in early spot market trading on Sunday.
A stronger US Dollar, which rallied the most since May after US President Donald Trump picked Kevin Warsh as the next Fed Chair, triggered the sell-off in these commodities. The US Dollar index now trades back above the mark of 97, having plunged to the lows of February 2022 early last week.
Wall Street Journal has reported citing people familiar with the matter than Nvidia’s plan to invest as much as $100 billion into OpenAI have stalled with executives expressing doubts over the deal completion.
Focus this week apart from the commodities will also be on earnings, with companies such as Amazon, Alphabet, and Disney reporting numbers. The non-farm payrolls data for the month of January will also be reported this Friday.
