U.S. stock futures fell Monday, following losses in European markets after a parliamentary vote in Greece failed to elect a new president.
Dow Jones Industrial Average futures fell 51 points, or 0.3%, to 17962. S&P 500 futures lost five points, or 0.2%, to 2079 and Nasdaq-100 futures declined 10 points, or 0.2%, to 4300. Changes in stock futures don’t always accurately predict moves in the stock market after the opening bell.
Greek assets were the hardest hit, with the Athex composite index of the country’s major stocks falling 6.5%. The failure to elect a new president paves the way for a snap election in which antiausterity parties could gain power, renewing fears over Greece’s financial woes. The Stoxx Europe 600 fell 0.4% in thin trade.
“The Greek elections rattled the markets in Europe somewhat, but it’s holiday trading volume,” which could exaggerate moves, said Peter Cardillo, chief market economist at broker-dealer Rockwell Global Capital. “We’ve gone through this before, and I suspect it’s just one of these…theatrical scenes that pop up,” he said.
U.S. stocks rose last week, with the Dow industrials notching four record closes. On Friday, the Dow added 0.1% to 18053.71. The S&P 500 gained 0.3% to 2088.77.
Investors have been cheered by economic news in the U.S., especially in comparison with slowing growth in Europe and China. The U.S. economy grew at a 5% annual rate in the third quarter, its strongest pace in 11 years, according to the latest data. Stronger growth brightens the outlook for corporate profits, which could continue to drive stocks higher. At the same time, the Federal Reserve said this month it will be patient in deciding when to raise interest rates.
The Dow has gained 772.88 points, or 4.5%, in the two weeks ended Friday. That is the biggest two-week point gain since the period ended Oct 31, and the largest two-week percentage gain since the period ended Nov. 7.
“The fact that the economy is growing at a pretty robust pace with the absence of inflation and a stronger dollar bodes well for equities,” said Mr. Cardillo of Rockwell Global Capital. “The fear factors have certainly diminished,” he added.
Demand for safe-haven government debt rose Monday, pushing the yield on the 10-year Treasury note down to 2.215%. Yields fall as prices rise.
But prices of gold, another haven asset, fell. Gold futures lost 0.2% to $ 1192.90 an ounce. Crude-oil futures rose 1.2% to $ 55.43 a barrel.
In corporate news, Google Inc. ’s Gmail email service has become unavailable in China. Gmail traffic in China declined sharply beginning on Friday. Google Class A shares fell 0.1% premarket.
American Apparel Inc. is being pressed by hedge fund Lion Capital to consider options including a sale of the company, The Wall Street Journal reported. The struggling retailer recently ousted founder and Chief Executive Dov Charney . Shares rose 2.8% in premarket trading.
Write to Saumya Vaishampayan at email@example.com