Stock futures fall on slowing concern over China’s economy, following 4 straight weeks of S&P gains

U.S. stock futures were down on Monday, putting Wall Street on track to pause after another positive week as traders braced for big retail profits.

Futures contracts linked to the Dow Jones Industrial Average fell 149 points, or 0.44%. S&P 500 and Nasdaq 100 futures fell 0.5% each.

Monday’s moves come after disappointing economic data out of China overnight. The country’s central bank also cut rates unexpectedly, raising concerns about China’s economic recovery.

Last week, the S&P 500 advanced 3.25% to mark its fourth consecutive positive week and its longest winning streak since 2021. The Nasdaq Composite ended the week up 3.08%, also for its fourth consecutive week. The Dow added 2.9%.

The gains came after economic data showed that inflationary pressures might ease a bit. The consumer price index remained stable from June to July, the producer price index recorded a surprise drop and import prices fell more than expected.

That helped ease investors who were eager to call the mid-June lows the bottom of the cycle. Just as many were quick to say that one month’s data doesn’t necessarily make it a reliable trend.

“While the bulls could mark this week as another win for a stock market rally that has remarkably lasted nearly two months since June lows, the bears continue to hammer the table on risks to ending earnings and margins. years that could ruin the party for those who celebrate too soon,” Morgan Stanley said on Sunday.

Investors await a week of earnings from major retailers, including Home Depot, Walmart and Target, and listen for clues about how their businesses have been affected by inflation and other macroeconomic challenges over the past quarter.

Retail sales data is also expected to be released this week.

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