By Tanya Agrawal
(Reuters) – U.S. stock index futures pulled back on Monday, after the three major indexes extended their post-election rally and closed at record highs.
The three indexes closed higher for three weeks in a row, with the S&P 500 notching its seventh record close since Nov. 8.
Oil prices were lower in choppy trading as the market grappled over the shaky prospect of OPEC producers being able to agree output cuts at a meeting on Wednesday aimed at reining in global oversupply. [O/R]
European shares were pressured by the drop in oil prices. Investors also awaited a referendum on constitutional reform in Italy on Sunday.
The dollar index <.DXY> extended its losses on Monday, retreating from its highest levels since 2003, as U.S. Treasury yields eased from recent peaks.
The dollar had been on a tear on expectations that President-elect Donald Trump’s infrastructure spending plans will boost inflation as well as a high likelihood of an interest rate hike in December.
The U.S. Federal Reserve will next meet on Dec. 13-14, with traders pricing in an 89 percent chance of a hike.
“An air of caution swept across the financial markets as doubts of a successful OPEC deal weigh heavily on global sentiment,” said Lukman Otunuga, research analyst at FXTM.
“Although Wall Street concluded last week near historical highs, losses could be realized if Asia’s and Europe’s bearish contagion contaminate American shares.”
ConocoPhillips <COP.N> was up 1.1 percent at $46.24 in premarket trading after Goldman Sachs raised its price target on the stock.
Amazon <AMZN.O> was down 0.3 percent at $778 after Citigroup reduced its price target on the stock.
(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)