Dow futures were down in
excess of 150 points in premarket trading as European stocks tumbled
over 2 percent, hitting lows not seen since October 2014 amid persistent
global growth fears.
"It
appears that softening economic data and disappointing earnings reports
are contributing to a negative feedback loop," said chief market
analyst at CMC Markets, Michael Hewson.
Investors will also be keen to hear what Fed Chair Janet Yellen has to
say this week as she delivers two days of testimony on the economy
before congressional committees Wednesday and Thursday.
The Fed chair's testimony comes as markets grow anxious about the
health of the economy and the Fed's stated intention to continue on a
rate hiking path.
But
the markets have also priced out the possibility of a rate hike for this
year, over concerns that the weakening economy and faltering financial
conditions could give way to a recession. New York Fed President William
Dudley this past week highlighted the Fed's concerns about financial
conditions.
"Recent events do appear to
have caused concern amongst some senior Fed policymakers with notable
shifts in tone from Stanley Fischer, Deputy Fed Chairman, and the New
York Fed's William Dudley in comments made last week," Hewson said
"It is these concerns about global growth, the Chinese economy and
global deflationary forces that has seen equity markets remain under
pressure since the beginning of the year with Germany's DAX closing last
week at its lowest level since October 2014," he added.
There are several economic reports of importance in the week ahead.
The JOLTs report on job openings and turnover Tuesday will be important,
after the January employment report showed a big decline in hiring —
just 151,000 payrolls — but a surprise pickup in wages and a decline in
unemployment to 4.9 percent, due to more workers finding jobs.
Major earnings due on Monday include 21st Century Fox (FOXA) and Yelp (YELP).
U.S. equities closed sharply lower on Friday amid
a massive drop in technology stocks and as mixed U.S. employment data
raised concerns the Federal Reserve may raise rates this year.
The Nasdaq (^NDX) composite fell 3.25 percent, asApple (AAPL) and the iShares Nasdaq Biotechnology ETF (IBB) dropped 2.67 percent and 3.19 percent, respectively.
By: Jenny Cosgrave (CNBC).
Review: Emerging Market Formulations &
Research Unit, Flagship Records.
For The #FacebookTeam