The major U.S. index futures are currently pointing to a lower open on Monday, with stocks likely to move to the downside after ending last Friday’s choppy session mixed.

Weakness among technology stocks may weigh on the markets, as reflected by the 0.5 percent drop by the Nasdaq 100 futures.

Shares of Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) are likely to come under pressure after a report from the Financial Times said China has introduced new guidelines to phase the company’s microprocessors out of government PCs and servers.

As part of a campaign to replace foreign technology with homegrown solutions, FT said stricter government procurement guidance also seeks to sideline Microsoft’s (NASDAQ:MSFT) Windows operating system and foreign-made database software in favor of domestic options.

News that Atlanta Federal Reserve President Raphael Bostic has scaled back his forecast to just one interest rate cut this year after previously projecting two rate cuts may also generate some negative sentiment.

Projections provided along with the Fed’s monetary policy announcement last week suggested Fed officials still expect three rate cuts this year.

Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of some key economic data in the coming days.

Traders are likely to keep an eye on reports on durable goods orders, consumer confidence and pending home sales, although a report on personal income and spending that includes readings on inflation said to be preferred by the Fed will be released when the markets are closed for Good Friday.

After trending higher for several sessions, stocks turned in a relatively lackluster performance during trading on Friday. The major averages fluctuated over the course of the session before eventually ending the day mixed.

While the Nasdaq inched up 26.98 points or 0.2 percent to a new record closing high of 16,428.82, the S&P 500 edged down 7.35 points or 0.1 percent to 5,234.18 and the Dow slid 305.47 points or 0.8 percent to 39,475.90.

Despite the mixed performance on the day, the major averages all moved sharply higher for the week. The Nasdaq spiked by 2.9 percent, the S&P 500 surged by 2.3 percent and the Dow jumped by 2.0 percent.

Profit taking contributed to modest weakness in early trading, with some traders looking to cash in on the recent strength in the markets.

Selling pressure remained relatively subdued, however, as traders remain optimistic about the outlook for interest rates following the Federal Reserve’s monetary policy announcement earlier in the week.

While the timing of the first rate remains somewhat uncertain the chances of a quarter point rate cut in June have rebounded to 66.5 percent, according to CME Group’s FedWatch Tool.

Nvidia (NASDAQ:NVDA) helped lead a subsequent rebound by the tech-heavy Nasdaq, with the chipmaker surging by 3.1 percent.

The AI darling, which has recently been a key driver of trading on Wall Street, ended the day at a record closing high.

Shares of FedEx (NYSE:FDX) also spiked by 7.4 percent after the delivery giant reported fiscal third quarter results that beat expectations and announced a new $5 billion share repurchase program.

Meanwhile, shares of Lululemon (NASDAQ:LULU) plunged by 15.9 percent after the athletic apparel retailer reported better than expected fiscal fourth quarter results but provided disappointing guidance.

Athletic footwear and apparel giant Nike (NYSE:NKE) also tumbled by 6.9 percent after reporting fiscal third quarter earnings and revenues that exceeded estimates but slowing growth in China.

Most of the major sectors showed only modest moves on the day, but financial stocks saw considerable weakness after moving sharply higher over the two previous sessions.

Reflecting the weakness in the sector, the NYSE Arca Broker/Dealer Index slid by 1.7 percent and the KBW Bank Index fell by 1.5 percent.

Notable weakness was also visible among telecom stocks, as reflected by the 1.5 percent loss posted by the NYSE Arca North American Telecom Index.

Gold, commercial real estate and airline stocks also moved to the downside on the day, although selling pressure was relatively subdued.

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