US pre-open: Futures trade lower following last week's solid gains

Wall Street futures were in the red ahead of the bell on Monday after major indices recorded solid gains last week.

As of 1225 GMT, Dow Jones futures were down 0.22%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.34% and 0.56% weaker, respectively.

The Dow closed 32.49 points higher on Friday, extending gains recorded in the previous session's CPI-fuelled rally.

Politics were in focus early on Monday, with investors digesting news that the Democratic Party will maintain control of the Senate following the 2022 US midterm elections.

Comments from Christopher Waller were drawing an amount of investor attention prior to the open, with the Federal Reserve governor stating the central bank was "at a point we can start thinking maybe of going to a slower pace". However, he also warned, "we're not softening."

"Quit paying attention to the pace and start paying attention to where the endpoint is going to be. Until we get inflation down, that endpoint is still a ways out there," said Waller.

Wall Street's "fear gauge", the Cboe Volatility Index, fell one point to 22.5, its lowest level since August, after trading above 30 points for almost all of October.

As stock futures tracked lower, Treasury yields advanced early on Monday, with the 2-year Treasury note up roughly six basis points at 4.391% and the benchmark 10-year note approximately seven basis points higher at 3.895%.

On the macro front, consumer inflation expectations for October will be published at 1500 GMT, while Federal Reserve vice chair Lael Brainard will deliver a speech at 1530 GMT.

In the corporate space, Tyson Foods will report earnings on Monday, while Walmart, Home Depot, Target, Lowe's, Macy's, and Kohl's will all issue their latest quarterly statements before the week is out.

Reporting by Iain Gilbert at Sharecast.com