Dow futures drop 300 points to start the week as Wall Street rally continues to fizzle

U.S. stock futures fell Monday following a halt in the summer rally last week, as fears of aggressive interest rate hikes returned to Wall Street.

Dow Jones Industrial Average futures fell 339 points, or by 1.01%. S&P 500 and Nasdaq 100 futures dropped 1.21% and 1.56%, respectively.

Those moves come as European markets experienced steep declines, driven partly by worries of rising inflation and higher interest rates around the world.

On Friday, the S&P 500 closed down 1.29%. The Dow Jones Industrial Average dropped 292 points or 0.86%, and the Nasdaq Composite dropped 2.01%. The major averages also posted weekly losses.

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Investors are anticipating a volatile week of trading ahead of Fed Chairman Jerome Powell’s latest comments on inflation at the central bank’s annual Jackson Hole economic symposium.

“Fed Chair Powell is likely to sound meaningfully more hawkish during his Jackson Hole speech on Friday morning at 10 am ET than he did at his July 27th press conference, when he said the fed funds rate is already back to neutral,” read a Monday report from Wolfe Research’s Chris Senyek.

On the earnings front, traders expect Palo Alto Networks and Zoom Video to report results Monday after the bell.

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