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

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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 321 points, or by 0.95%. S&P 500 and Nasdaq 100 futures dropped 1.22% and 1.57%, respectively.

Those moves come as European markets experienced steep declines, driven in part 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.

Those moves come ahead of what could be a volatile week of trading on Wall Street. Investors are anticipating Fed Chairman Jerome Powell’s latest comments on inflation at the central bank’s annual Jackson Hole economic symposium.

“We’ve written a couple of times recently about wait and see trading ahead of key events/releases… and how that can set the stage for greater volatility around the events themselves, and we may see a bit of that play out next week as investors await the symposium,” read a Friday note from Susquehanna’s Christopher Jacobson.

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