US stock futures sink as economic concerns mount, tech rout continues By Investing.com

Investing.com– U.S. stock index futures fell sharply Monday amid growing concerns over an economic slowdown, with technology stocks hit particularly hard. 

At 05:25 ET (09:25 GMT), fell xxx points, or 0.5%,  dropped xx points, or 0.9%, and slumped xxx points, or 1.4%. 

Slowdown fears batter Wall Street 

These hefty losses in Wall Street futures came after U.S. stocks were walloped by fears of an economic slowdown last week.

A string of weak readings ramped up concerns that the Federal Reserve had kept interest rates at elevated levels for too long, and that chances of a soft landing for the economy were fading.

This notion came to a head on Friday after data for July missed expectations by a wide margin, indicating a substantial cooling in the labor market.

While the data did drive up hopes for more interest rate cuts by the Fed, it drained any appetite for risk-driven assets. 

The technology stocks which profited so greatly from the positive tone at the start of the year have been hit hard or late, with the tech-heavy now down more than 10% from a record high hit earlier in the year, moving into correction territory. 

More economic cues ahead

There is more economic data due out Monday, including the July ISM Services PMI, while San Francisco Fed President Mary Daly will be speaking at a conference after the close Monday.

Investors will be looking for more clues as to the strength of the world’s largest economy, after Friday’s official jobs report raised the specter of recession.

The US stock volatility gauge — the — exceeded the 40 handle earlier on Monday, climbing to the highest level since October 2020, noted Bloomberg.

The index has risen as much as 79%, the most since February 2018, and has hit its highest intraday level in four years.

“We have increased our 12-month recession odds by 10pp to 25%,” said analysts at Goldman Sachs in a note, though they thought the danger was limited by the sheer scope the Fed had to ease policy.

Markets now price in a 78% chance the Federal Reserve will not only cut rates in September, but ease by a full 50 basis points. 

More economic cues ahead

Most of the mega cap companies have already reported, but there are still some high-profile earnings results expected in the coming days.

Industrial bellwether Caterpillar (NYSE:) and ride sharing major Uber Technologies (NYSE:) are due on Tuesday.

Super Micro Computer (NASDAQ:), which saw a major valuation spike on hype over artificial intelligence, is also due on Tuesday, while media majors Walt Disney (NYSE:) and Warner Bros Discovery (NASDAQ:) are due on Wednesday.