Investing.com-- U.S. stock index futures edged lower in Asian trading on Monday following last week’s strong Wall Street performance, as investors turned cautious ahead of the inauguration of President-elect Donald Trump.
Stock markets will be closed on Monday for the Martin Luther King Jr. Day holiday. President-elect Trump will also assume office on Monday.
S&P 500 Futures inched 0.2% lower to 6,022.25 points, while Nasdaq 100 Futures fell 0.2% to 21,553.25 points by 21:12 ET (02:12 GMT). Dow Jones Futures edged down 0.1% to 46,660.0 points.
Trump set to take office, plans several executive actions on day one
As Trump prepares to assume office, financial markets are poised for potential volatility, closely monitoring his anticipated executive actions and policy directions.
Investors are particularly attentive to his proposed measures on trade, taxation, and deregulation, which are expected to influence market dynamics significantly.
On his first day, Trump plans to sign more than 200 executive orders addressing key issues such as border security and energy policy, media reports have shown.
These actions include declaring a national border emergency and initiating steps to secure the southern border. Additionally, he intends to fully unleash Alaskan energy resources, signaling a shift in energy policy.
Equity markets have shown cautious optimism, but expect significant volatility with Trump’s moves. Analysts believe that, initially, investors will adopt a wait-and-see approach as they assess the potential impacts of the new administration's policies.
Wall Street ends week with strong gains, corporate earnings in focus
On Friday, the S&P 500 rose 1% to 5,996.66 points, the Dow Jones Industrial Average gained 0.8% to 43,487.83, while the NASDAQ Composite jumped 1.5% to 19,630.20 points.
December’s inflation data released last week boosted investor confidence, especially when Trump’s policies are expected to increase price pressures. The data also allayed some fears surrounding the Federal Reserve’s slower rate cut path.
Last week’s positive earnings results from major banks also supported the upbeat mood.
Investors now keenly await earnings reports from several major companies, which are expected to provide insights into various sectors of the economy.
This week, key earnings reports include Netflix Inc (NASDAQ:NFLX), United Airlines Holdings Inc (NASDAQ:UAL) on Tuesday; Johnson & Johnson (NYSE:JNJ) and Procter & Gamble Company (NYSE:PG) on Wednesday; and Verizon Communications Inc (NYSE:VZ) and American Express Company (NYSE:AXP) on Friday.