- Subdued start after heavy sell-off
- Nasdaq gains as momentum stocks recover
- Alcoa in focus ahead of quarterly results
Dow Jones: -0.17%
S&P 500: -0.06%
US markets opened with small losses on Monday following a heavy sell-off the previous session after weakness in so-called 'momentum stocks'.
"As we have no significant economic data out today, markets will be driven by the negative sentiment from last week," said Sam Fox from Financial Sales at Spreadex.
The S&P 500
was down 0.1% in early trading, lower for the third straight day, while the Dow Jones Industrial Average fell 0.2%.
The Nasdaq, however, were up 0.1%, rebounding after its worst one-day drop in two years on Friday as biotech and internet stocks faced heavy selling pressure after performing well over recent months. These fast-growing sectors recovered slightly today.
The World Bank was dampening sentiment on global equity markets on Monday after cutting its estimates for economic growth in Asia. In particular, China growth was revised to 7.6% from a previous projection of 7.7 %, with the World Bank citing a "bumpy start to the year" for the world's second largest economy.
Meanwhile, heightened tensions in Ukraine was also in investors' minds after a Ukraine naval officer was reportedly shot dead by a Russian solider in eastern Crimea. The news came as Ukraine Prime Minister Arseniy Yatsenyuk accused Russia of provoking unrest in his country's eastern region as an excuse to send troops across the border.
On today's agenda, Federal Reserve official James Bullard will speak on monetary policy in Los Angeles, potentially shedding further light on the central bank's next move.
At 17:00 GMT, the US consumer credit report will be released and is anticipated to come in at $14.1bn in February, up from $13.7b a month earlier.
Momentum shares, Alcoa kicks off earnings season
Facebook attempted to claw its way back after a tough week last week which saw the social media group's shares
lose 5.4% of their value following a near-140% rise over the past year. The stock was up 2% in early trading.
Others such as Biogen, Gilead Sciences and Twitter, who have also experienced falls over the past few days, were trading firmly higher this morning, giving the Nasdaq a lift.
Aluminium producer Alcoa edged higher ahead of its results tomorrow as it unofficially starts the US quarterly earnings season after the close of trade.
Heavyweight banking giant JPMorgan Chase and Wells Fargo, who also report this week, were trading lower after the opening bell this morning.
Sprouts Farmers Market slumped as the organic grocery chain recalled its black peppercorns after routine testing by US food regulator showed that some of it contained salmonella.
West Texas Intermediate futures were down 0.3% at $100.84 a barrel in early trading.
The yield on a benchmark 10-year US Treasury was down two basis points at 2.71%.