Nasdaq Futures & S&P 500 Drop Ahead of the US Return – Asia Market Wrap

US equity-index futures fell, implying that the multiweek decline in technology companies may continue as Wall Street investors return from their holiday break on Tuesday. Treasuries rose and precious metals fell.

Contracts for the S&P 500 Index, which have slid in each of the last two weeks to erase year-to-date gains, lost 0.5%, while those for the Nasdaq 100 fell 0.9%. The tech-heavy gauge has decreased for three weeks in a row, bringing it down around 2% year to date. US traders are back from their Presidents’ Day holiday on Monday. European stocks were likewise headed for a dismal start.

Asian equities fell 0.2% in thin trade with China, Hong Kong, and many regional markets closed for the Lunar New Year.

Developments in the Middle East have refocused attention on geopolitical risk, while traders also consider the likelihood of Fed interest rate cuts following Friday’s inflation report. Shifting sentiments about AI are adding to the concern, which is spreading beyond the technology sector as the so-called AI panic trade emerges.

Iranian Foreign Minister Abbas Araghchi met with the head of the UN’s atomic watchdog in Geneva on Monday, ahead of a second round of nuclear talks with the US.