US stock futures could see some pressure today after Moody’s downgraded the U.S. credit rating outlook from stable to negative. Additionally, sentiment could turn to caution in the face of the risks of a government shutdown.
The market could also remain at risk after traders reacted to the comments of the Federal Reserve Chair, Jerome Powell and other Fed members, which have affected monetary policy expectations.
The energy sector underperformed last week, influenced by a continued drop in oil prices for the third consecutive week due to concerns over reduced demand stemming from worsening economic conditions. The sector could remain exposed to additional risks while the uncertainty around energy prices remains.
In contrast, the technology sector, led by the semiconductor industry, emerged as the top performer as the industry continues to benefit from the impact of strong earnings from the likes of Intel, Advanced Micro Devices and others.
Additionally, the anticipated meeting between President Biden and Chinese President Xi Jinping could be viewed as a positive factor for the sector.
Attention could turn to inflation readings tomorrow as well as job market data later this week while monetary policy’s direction remains a major concern.