Monday June 12th


Nasdaq futures fall as tech stocks take a hit

Nasdaq futures fell 1 percent on Monday as technology stocks resumed their downward trajectory from the previous session. Shares of Apple dropped nearly 2.5 percent in the premarket after Mizuho Securities downgraded the stock to neutral from buy, noting the best-case scenario is priced into the shares. Amazon and Google-parent Alphabet were also under pressure, declining 1.2 percent and 0.8 percent, respectively. The technology sector dropped 2.74 percent on Friday, marking its worst daily performance since May 17, when it fell 2.79 percent. Dow and S&P futures also fell on Monday, trading 17 points and 4 points lower, respectively. Traders also kept an eye on the latest political elections in Europe and looked ahead to the Federal Reserve's latest meeting later this week. The U.S. central bank is set to announce on Wednesday whether, as widely anticipated, it is to raise interest rates. On the data front, Monday afternoon will see the latest federal budget announcement. There are no significant earnings expected on Monday. In Europe, the pan-European Stoxx-600 index was around 0.89 percent lower on Monday morning following a mixed weekend for European politics. The future of the U.K. government faced further uncertainty following an inconclusive general election last week, meaning that the incumbent Conservative government plans to strike an alliance with the small Northern Irish Democratic Unionist Party in order to secure a parliamentary majority. Meanwhile in France President Emmanuel Macron's La Republique En Marche party showed signs of success in the first round of parliamentary elections. In Asia, the Shanghai Composite in China closed 0.57 percent lower, while the Nikkei in Japan closed 0.52 percent lower. In oil markets, Brent crude traded at around $49.07 a barrel on Monday, up 1.89 percent, while U.S. crude was around $46.62 a barrel, up 1.72 percent. Gold inched up on Monday as Asian stocks fell and the dollar eased ahead of a U.S. Federal Reserve policy meeting that could give clues on the pace of interest rate hikes over the rest of the year. Spot gold was up 0.1 percent at $1,266.90 an ounce as of 0813 GMT, after shedding 1 percent in its biggest one-day percentage decline since May 18 in the previous session. U.S. gold futures for August delivery fell 0.2 percent to $1,269 an ounce.