Stocks Head For First Drop Of 2026 As Focus Turns To Geopolitics, Macro

US equity futures are slightly down as markets await key economic data releases. Global markets are showing some resistance after a strong start to 2024. Bonds are seeing increased demand, flattening the yield curve. Commodities are mixed with agricultural commodities performing better. Several US economic indicators are due, including ADP employment and ISM services data. Corporate news includes company acquisitions and strategic decisions. Geopolitical tensions are escalating, impacting sentiment, particularly due to conflicts in China and Japan. European markets experienced mixed performance and energy stocks were down. Precious metals are broadly lower and memory chip shortages are a key topic for AI bulls. The Federal Reserve's rate path is being closely watched, influencing market movements. A record-sized trade in federal funds futures markets was observed.