Traders work on the floor of the New York Stock Exchange during afternoon trading on September 13, 2022 in New York City.
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Stock futures fell on Monday after the major averages posted their worst week since June and rates rose ahead of the Federal Reserve’s two-day meeting this week.
Futures linked to the Dow Jones Industrial Average fell 275 points, or 0.9%. S&P 500 and Nasdaq 100 futures fell 0.9% and 1%, respectively.
Investors head into the new week focused on the Fed’s latest policy meeting, which begins on Tuesday. The central bank is expected to raise interest rates by another three-quarters of a point, although investors are also awaiting guidance on corporate earnings before the next reporting season begins in October.
“With the S&P 500 below the all-important 3,900 level, and the 10-year Treasury yield inching closer to 3.5%, the Fed-sensitive 2-year Treasury note flirts with the 3.9%, suggesting that the Fed’s aggressive campaign to kill inflation should be taken seriously,” said Quincy Krosby, chief global strategist at LPL Financial. “The canary in the coal mine may not be dead yet, but it’s probably struggling to breathe.”
Rates rose on Monday with the yield on the 10-year Treasury note hitting an 11-year high of 3.5%.
Stocks fell last week as investors reacted to a hotter-than-expected inflation report and a gloomy warning from FedEx about a “significantly worsening” global economy. The major averages posted their fourth weekly loss in five weeks.
Beyond the Fed meeting, there are only a few economic data releases this week, including August housing starts on Tuesday and initial jobless claims on Thursday.
There are also a handful of corporate earners on deck, including Costco, Darden Restaurants, General Mills and Lennar.
—CNBC’s Patti Domm contributed reporting.