Futures of U.S. stock markets fell on Monday, suggesting that major stock market indices will fall from record highs as investors posted gains as new political and economic uncertainties weighed.
Futures linked to the S&P 500 fell 0.5%, indicating that the benchmark index could fall from its all-time high that closed on Friday. Contracts linked to the Nasdaq-100 fell 0.4% and those linked to the Dow Jones Industrial Average fell 0.7%.
Actions have rallied in recent days to bet that a Democratic-controlled Congress will increase government spending, bolstering the economic recovery.
Market sentiment is declining at the start of the new week as investors face various risks. As for the political front, House Speaker Nancy Pelosi (D., California) said the House could go on to charge President Trump as early as this week. This raises concerns that the new outrage in Washington may diminish support for other important measures.
Recent economic data also showed that the US labor market recovery stalled in December and ended seven months of employment growth and added concern that the short-term outlook is worsening. Covid-19 infection rates also remain high. Experts have warned this month of growth in new cases, hospitalizations and deaths after the December holiday and travel meetings.