Stock Futures Decline A Little After S&P 500 Best Week This Year – Europe Market Wrap

After a big surge last week, US equities were set to open lower as investors evaluated the prospects for corporate profits ahead of important US data that could provide more hints about the Federal Reserve’s policy direction.

S&P 500 futures declined following Wall Street’s strongest weekly performance of the year. The longest run of increases in twelve years, nine weeks in a row, saw the STOXX Europe 600 index decline.

Traders are in wait-and-see mode ahead of a busy week of economic data, including the Fed’s preferred inflation gauge, which is due Friday, when many markets will be closed for the holiday. While confidence has grown that the Fed will decrease interest rates this year following dovish statements by Chair Jerome Powell last week, investors are getting concerned about stock valuations following the recent run.

In premarket trade in the United States, Intel and AMD fell after the Financial Times reported that China was looking to limit the use of US-made processors in government systems. United Airlines shares dipped as US aviation regulators considered measures to limit the carrier’s growth following a string of safety mishaps.

Even after this year’s gains, Goldman Sachs strategists believe European equities prices are not yet overvalued, with the Stoxx Europe 600 expected to grow by approximately 6% over the next year.