By Scott Kanowsky
Investing.com — U.S. futures slipped early Monday after major indices on Wall Street posted their worst week since January.
As of 0253 EST (0653 GMT), Dow futures were lower by 1.31%, S&P 500 futures contracted by 1.71%, and tech-heavy Nasdaq 100 Futures were down 2.15%.
The indices fell last week as concerns over soaring prices mounted following the release of the latest U.S. inflation reading. May’s U.S. consumer price index came in at 8.6% – the highest reading since 1981.
“In the space of a few days, markets have gone from optimism that inflation might be on the cusp of plateauing, to rising apprehension that we could not only see higher prices, but that prices might well remain higher for a lot longer than originally thought,” wrote CMC Markets Chief Markets Analyst Michael Hewson in a note on Monday.
The Federal Reserve is scheduled to meet this week, with policymakers expected to raise interest rates by a half-percentage point in a bid to tame inflation. But fears remain that the Fed will act aggressively and potentially plunge the economy into a recession.
Meanwhile, the 2-year U.S. treasury yield rose to its highest level since late 2007. The benchmark U.S. 10-year yield also moved higher, adding on to gains made on Friday.