Futures tied to the major U.S. indexes pointed lower on Monday, signaling a potential retreat on Wall Street after two straight sessions of gains that lifted benchmarks to all-time highs.
Analysts said profit-taking was likely playing a role, with traders choosing to cash in after Friday’s strong close that followed the Federal Reserve’s decision to trim interest rates by 25 basis points.
The cautious mood also comes on the heels of new immigration measures from the White House. President Donald Trump signed a proclamation introducing a $100,000 fee for new H-1B visa applicants. According to the administration, the goal is to “curb abuses that displace U.S. workers and undermine national security.”
Market strategists highlighted the potential ripple effects in the tech sector. “Investors will be watching closely for any fall-out in the technology sector from the sharp rise in H1-B visa fees – affecting skilled foreign workers,” said AJ Bell investment director Russ Mould.
“The news sparked some initial confusion around whether it would affect current visa holders and while this fear has been addressed and it has been confirmed as a one-time fee, it could still have a significant impact on tech firms,” he added. “Many in the sector employ large numbers of people on these visas.”
Even with today’s weaker start, trading volumes could remain subdued as investors await fresh U.S. inflation data and upcoming speeches from Federal Reserve officials, including Chair Jerome Powell.
Last week’s performance underscored the market’s strength. On Friday, the Nasdaq climbed 160.75 points, or 0.7%, to 22,631.48, while the S&P 500 advanced 32.40 points, or 0.5%, to 6,664.36. The Dow Jones Industrial Average rose 172.85 points, or 0.4%, to end at 46,315.27.
For the week, the Nasdaq gained 2.2%, with the S&P 500 up 1.2% and the Dow higher by 1.1%. Despite September’s reputation as a weak month for equities, optimism about lower interest rates has helped keep momentum alive.
The Fed’s latest rate cut — paired with signals that two more reductions could follow this year — has supported bullish sentiment. Adding to the upbeat outlook, Trump said his recent call with Chinese President Xi Jinping was “very productive.”
The president said the two leaders discussed issues ranging from trade to fentanyl, the Ukraine conflict, and a deal on TikTok’s U.S. operations.
Friday also showcased sharp sector moves. Gold stocks surged as bullion prices hit new highs, pushing the NYSE Arca Gold Bugs Index up 4.3%. Software shares gained ground as well, with the Dow Jones U.S. Software Index advancing 1.8%.
By contrast, energy companies slipped as oil extended its pullback. The Philadelphia Oil Service Index fell 2.1%, while the NYSE Arca Oil Index dropped 1.5%. Housing stocks also retreated, sending the Philadelphia Housing Sector Index down 1.2%.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.