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Market snapshot: US inventory futures slide from report highs as Chinese language information and the state of affairs in Afghanistan transfer into the highlight

US stock futures fell on Monday as weaker-than-forecast Chinese economic data clouded market sentiment.

What's up

Futures on the Dow Jones Industrial Average
JM00,
-0.23%
dropped 77 points;

Futures on the S&P 500
ES00,
-0.23%
decreased by 0.2%;

Futures on the Nasdaq Composite
NQ00,
-0.17%
slipped 0.1%.

Last week, the S&P 500
SPX,
+ 0.16%
hit 0.7%, posting its 48th record close in 2021. The Nasdaq Composite
COMP,
+ 0.04%
saw a 0.1% drop, the second drop in three weeks.

What is driving the markets?

Data released from China showed that retail sales, industrial production and fixed investment all rose more slowly than projected. “The slowdown is now visible to everyone. The delta eruption and the return of shutdowns across China are of course not helping either, ”said Arne Petimezas, senior analyst at AFS.

The disappointing data from the world's second largest economy came after a report released Friday that showed a staggering decline in US consumer sentiment. A report on production in the New York area is due to be released on Monday.

Headlines also focused on the situation in Afghanistan, where the Taliban quickly took power after the withdrawal of US forces, leading some to question whether the political ramifications will extend beyond foreign policy.

"For [President Joe] Biden, developments in Afghanistan have made some unwelcome headlines just as further progress was made on his economic agenda when the Senate passed the infrastructure bill with bipartisan support last week," said Henry Allen, strategist at Deutsche Bank.

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