Stock futures indicated a cautious session on Monday after a plunge in Boeing shares and amid uncertainty over Federal Reserve policy.
Boeing fell more than 8% premarket after the Federal Aviation Administration ordered the temporary grounding of 171 Boeing 737 MAX 9 planes after a MAX 9 operated by Alaska Airlines lost a section of its fuselage midair Friday evening.
Sentiment was further dampened by a sharp fall in China stocks – the Hang Seng lost 1.9% to flirt with its lowest levels since November 2022 – as concerns about draconian regulation and the health of the world’s second biggest economy lingered.
Meanwhile, the 10-year Treasury yield was trading at 4.049% as investors priced the chances of at least a 25 basis point rate cut at the Fed’s March meeting at 62.8%, down from 88.5% a week ago.