US futures were down on Friday, marking a close end to a strong week on Wall Street as investors expected data on the performance of the economy in early 2021.
Futures linked to the S&P 500 fell 0.7%, indicating that the benchmark could open lower after megacap technology companies advanced it to its fourth record close on Thursday. Technology-focused Nasdaq-100 index futures lost 0.6% and contracts tied to the Dow Jones industrial average fell 0.8%.
Markets appeared to be on hold after concentrating for much of January, and money managers said there was no clear catalyst for the decline. Investors have been happy in recent days for a solid start to the earnings season, although some are concerned that high valuations in market corners will leave stocks vulnerable in the coming months.
“With the lack of new ammunition, people just stop,” said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management.
Investors are wary of adding new positions ahead of the Federal Reserve’s decision on monetary policy and the profits of major companies such as Facebook, Apple and Tesla next week, he added.