Tech Sector Braces for Impact as New H-1B Visa Fees Trigger Wall Street Pullback

Wall Street is expected to open in the red on Monday, with S&P 500 futures declining 0.3% as traders engage in profit-taking. This initial weakness follows a strong rally that saw major indices reach new record closing highs on Friday, bolstered by the Federal Reserve's decision to lower interest rates by a quarter point. Adding to the downward pressure is a new proclamation signed by President Donald Trump, which restricts the entry of certain H-1B nonimmigrant workers. The administration has introduced a $100,000 fee for new H-1B applicants, a move designed to curb abuses that displace domestic workers and protect national security. Market analysts suggest the technology sector may face the most significant fallout, as many firms in the industry rely heavily on skilled foreign labor. While the fee is a one-time charge and does not affect current visa holders, the steep cost could create operational headwinds for tech companies. On Friday, the Nasdaq closed at 22,631.48, the S&P 500 at 6,664.36, and the Dow at 46,315.27. For the week, the Nasdaq surged 2.2%, while the S&P 500 and Dow rose 1.2% and 1.1%, respectively. Trading activity is expected to remain cautious as investors pivot toward upcoming U.S. inflation readings and scheduled remarks from Federal Reserve Chair Jerome Powell. In commodities, gold futures surged to $3,747.90 an ounce, while crude oil futures declined to $62.19 a barrel.