Losses for tech stocks could reboot as investors return from Easter break

An apprehensive return for investors after the long holiday weekend was in the cards for Monday, as Nasdaq-100 futures led U.S. stocks lower. It was an early sign that selling for tech stocks has not quite finished.

Investors were kicking off a new month and quarter, with manufacturing surveys expected to draw some attention.

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What are the main benchmarks doing?

Dow Jones Industrial Average futures YMM8, -0.25%  fell 81 points, or 0.3%, to 24,066, while S&P 500 futures ESM8, -0.23% ESM8, -0.23% dipped 7.5 points, or nearly 0.3%, to 2,635.25. Nasdaq-100 futures NQM8, -0.50%  dropped 41 points, or 0.6%, to 6,553.50.

Thursday marked the end of the month and quarter for major indexes as markets were closed in observance for Good Friday. The Dow Jones Industrial Average and the S&P 500 index broke a streak of quarterly gains and, along with the Nasdaq, logged steep declines for March.

Stocks rallied Thursday, though, with the Dow DJIA, +1.07% closing up 309 points, or 1.2%, to 24,143. The S&P 500 SPX, +1.38% and Nasdaq Composite Index COMP, +1.64% gained 1.4% and 1.6%, respectively, in a volatile session.

Read: What struggled in the first quarter? Stocks, bonds, basically everything

What’s driving markets

Investors will return from the long Easter weekend to fresh developments on the trade-war front. China announced tariffs on about 130 U.S. goods, including a 25% penalty slapped on U.S. pork and 15% on fruit. The news means China has made good on its threat to retaliate against the Trump administration’s tariffs on Chinese steel and aluminum imports.

Read: Steel, cocoa among first-quarter gainers, but coal, sugar take biggest hits

And investors will be watching to see if tech stocks can keep up a rebound from late last week. Fund managers added big-name tech stocks at the end of the quarter, despite regulatory concerns as of late that have pressured companies such as Facebook Inc. FB, +4.42%  , Tesla Inc. TSLA, +3.24%   and Amazon.com Inc. 

President Trump increased his attack on Amazon’s business practices on Saturday, tweeting how the U.S. postal service loses money each time it delivers an Amazon package, a statement that others have contradicted. Amazon shares AMZN, +1.11%   were lower premarket after gaining over 1% Thursday.

Opinion: Should Facebook, Uber and other tech companies be more tightly regulated?

What data are in focus?

Economic data features the Markit manufacturing purchasing managers index for March due at 9:45 a.m. Eastern Time, followed by the Institute for Supply Management manufacturing index for March at 10 a.m. Eastern and construction spending for February at the same time.

Data highlights for the rest of week include Friday’s March payrolls report, where some economists expect hiring will slow down.

Check out: MarketWatch’s Economic Calendar

What are strategists saying?

“Spring has sprung, and so have green shoot progress on the US/China trade front, but investors continue to struggle with the new normal of higher market volatility, and lower returns after the S&P 500 recorded its first quarterly losses since 2015. The debate over global trade continues to simmer, and the regulation of technology sectors amidst the Facebook security breach has steadily eroded investor sentiments,” said Stephen Innes, head of Asian-Pacific trading at Oanda, in a note to clients.

Which stocks are in focus?

Tesla TSLA, +3.24%  could be in the spotlight after the National Transportation Safety Board said it was “unhappy” that the electric-car maker revealed detailed information about a fatal California crash. Meanwhile, Tesla CEO Elon Musk sent out a series of April Fool’s tweets about the company going bankrupt. That’s after shares sank around 22% in March. The stock was down about 3% in premarket trading.

Toronto-based Hudson’s Bay Co. HBC, +3.60%  could face some pressure after news hackers stole credit- and debit-card data from more than 5 million customers of its retail brands Saks Fifth Avenue, Saks Off Fifth and Lord & Taylor Stores.

What are other markets doing?

European stocks SXXP, +0.44% SXXP, +0.44% were closed for Easter Monday. Asian stock markets NIK, -0.31% HSI, +0.24% had a mixed day.

Oil prices CLK8, +0.37%  were moving higher, just above $65 a barrel. Gold futures GCJ8, +0.61% edged down, while the ICE U.S. Dollar Index DXY, -0.12% DXY, -0.12% was down 0.1% at 89.89.