Stock futures tumble, signaling losses after new highs



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U.S. equity futures fell on Friday, signaling the muted end of a good week on Wall Street as investors waited for data on how the economy is performing in early 2021.

Futures related to the S&P 500 fell 0.7%, indicating that the benchmark gauge may open lower after megacap tech companies pushed it to its record fourth close of the new year on Thursday. Futures contracts on the technology-focused Nasdaq-100 index fell 0.6% and contracts linked to the Dow Jones Industrial Average fell 0.8%.

Markets appeared to take a break after rallying for much of January, with fund managers saying there was no clear catalyst for the decline. Investors have been hailed in recent days with a strong start to the earnings season, although some fear that high valuations in the corners of the market will leave stocks vulnerable in the months ahead.

“Without new ammunition, people just stop,” said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management.

Investors are reluctant to add new positions ahead of the Federal Reserve’s decision on monetary policy and the earnings of big companies like Facebook, Apple and Tesla next week, he added.

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