US pre-open: Futures in the red ahead of Q1 earnings

Wall Street futures were in the red ahead of the bell on Monday as investors awaited the beginning of the first-quarter earnings season this week.

As of 1230 BST, Dow Jones futures were down 0.11%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.12% and 0.28% lower, respectively.

The Dow closed 297.03 points higher at yet another fresh record on Friday.

Market participants will be focussed on corporate earnings throughout the week, with expectations set for mostly positive news thanks to a recovering US economy amid the White House's ongoing Covid-19 vaccine rollout. Some of the country's largest banks, such as Goldman Sachs and JPMorgan Chase, will report results this week.

Comments from Federal Reserve chairman Jerome Powell that central bank wanted to see inflation rise above its 2% for an extended period before officials move to raise interest rates and reports that President Joe Biden, along with other Democrats, will meet with a bipartisan group of lawmakers to try to convince Capitol Hill to back his $2.0trn infrastructure package were both also in focus.

SpreadEx's Connor Campbell said: "Looking ahead to this afternoon and, after last Friday’s big push, the Dow Jones is set retreat from its record highs.

"The futures have the index down 110 points and back below 33,700. If things go the Dow's way this week, especially in regard to Monday’s 3-year and 10-year Treasury auctions and Tuesday’s inflation readings, then it could cross 34,000. If not, and fears of rising bond yields and inflationary pressures reignite, then the Dow's recent gains could quickly unravel."

On the macro front, March's consumer inflation expectations numbers will be out at 1600 BST, while last month's budget statement will follow at 1900 BST.

Federal Reserve Bank of Boston president Eric Rosengren will also deliver comments at 1800 BST.