Dow futures plunge 370 points: 5 things to know before market opens

• Dow futures dropped 373 points (0.8%), while S&P 500 and Nasdaq-100 futures fell 0.4% and 0.3% respectively, pressured by higher yields and oil prices
• Federal Reserve minutes due Wednesday will be closely watched for any shift in policy stance as inflation risks remain sticky
• Nvidia and Walmart earnings this week will test whether corporate results can offset unfavorable rate conditions, offering insights into AI spending and consumer demand

Market Summary: Dow Futures Plunge on Rising Yields and Oil Prices

Key Market Movements

U.S. stock index futures declined sharply Monday, with Dow Jones futures falling 373 points (0.8%), S&P 500 futures down 0.4%, and Nasdaq-100 futures slipping 0.3%. The selloff reflects renewed concerns over persistently elevated borrowing costs.

Primary Drivers

Rising Treasury yields and climbing oil prices are pressuring equities, reviving investor concerns that interest rates may remain higher for longer. This combination threatens equity valuations, particularly for growth stocks and debt-heavy companies, as higher energy prices compound inflation worries while making borrowing more expensive.

Critical Events This Week

Federal Reserve Minutes (Wednesday): Investors will scrutinize the latest Fed meeting minutes for policy direction signals, watching whether policymakers maintain an easing bias or shift toward a more neutral stance amid sticky inflation.

Major Earnings Reports: Nvidia and Walmart earnings will test market resilience across two critical sectors—AI technology spending and consumer demand—offering insights into corporate health amid challenging macroeconomic conditions.

Notable Pre-Market Movers

Dominion Energy: Shares rallied on Bloomberg reports of takeover discussions with NextEra Energy, driving utility sector interest.

UnitedHealth Group: Stock declined after Berkshire Hathaway disclosed it had exited its position in the health insurer, signaling potential concerns about the sector.

Market Implications

The key question facing investors is whether markets can withstand sustained higher yields and oil prices without broader deterioration. Technology stocks and long-duration growth names face particular vulnerability if borrowing costs remain elevated, making this week a critical test of overall market resilience and investor risk appetite.