Stocks are likely to show a sharp move to the downside at the start of trading on Monday amid continued uncertainty about developments overseas. The major index futures are currently pointing to a notably lower open for the markets, with the Dow futures down by 95 points.
Lingering uncertainty about the political situation in Greece is likely to weigh on the markets once again, as the debt-plagued nation continues to struggle to form a coalition government over a week after parliamentary elections.
While Greek President Karolos Papoulias continues to meet with party leaders in a last ditch effort to form a government, the country seems poised for a new round of elections.
Traders are also keeping a close eye on developments in China, where the central bank announced over the weekend that it would lower the reserve requirement for banks by 50 basis points in a bid to inject more liquidity into the system.
The move has added to recent concerns about the outlook for growth in China, which represents the world's second largest economy behind the U.S.
In corporate news, shares of Yahoo (YHOO) may be in focus after the online media giant announced the resignation of CEO Scott Thompson, who left the company over a resume padding scandal.
The company named Ross Levinsohn as interim CEO. Yahoo also said Fred Amoroso has been named Chairman of the Board of Directors, replacing Roy Bostock.
After seeing considerable volatility in early trading on Friday, stocks drifted to the downside in the afternoon, ending the day mostly lower. Troubling news from JP Morgan (JPM) weighed on the markets along with lingering uncertainty about the political situation in Europe.
The major averages ended the session mixed, with the Nasdaq closing just above the unchanged line. While the Nasdaq edged up 0.18 points or less than a tenth of a percent to 2,933.82, the Dow dipped 34.44 points or 0.3 percent to 12,820.60 and the S&P 500 slid 4.60 points or 0.3 percent to 1,353.39.
Despite the mixed performance on the day, the major averages all moved lower for the week. The Nasdaq fell by 0.8 percent, while the Dow and the S&P 500 dropped by 1.7 percent and 1.1 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday. Japan's Nikkei 225 Index crept up by 0.2 percent, while Hong Kong's Hang Seng Index ended the day down by 1.2 percent.
Meanwhile, the major European markets are all seeing significant weakness on the day. While the French CAC 40 Index is down by 2.4 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both down by 2.1 percent.
In commodities trading, crude oil futures are tumbling $2.09 to $94.04 a barrel after declining $2.36 or 2.4 percent to $96.13 a barrel in the week ended May 11th. Gold futures, which dropped $61.20 or 3.7 percent to $1,584 an ounce last week, are sliding $22.80 to $1,561.20 an ounce.
On the currency front, the U.S. dollar strengthened across the board last week, benefiting from its safe haven appeal. The greenback added 1.3 percent against the euro before settling the week at $1.2917. The U.S. dollar is currently trading at 79.81 yen and is valued at $1.2834 versus the euro.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.