The stock index futures were flat on Sunday after the index posted its worst month since 2008 due to rising rates, rampant inflation, and lackluster earnings from some of the largest technology companies.
The contracts tied to the Industrial Average fell. The S&P 500 futures were not changed.
The major averages fell on Friday. The loss last week was 2.5%, and the blue chip index lost 939 points during the session. It was the fifth-straight negative week for the 30-stock benchmark.
On Friday, the S&P 500 declined 3.63%, its worst day since June 2020, and posted its fourth-straight negative week for the first time since September 2020. The Nasdaq fell 4.2% on Friday and has lost four-straight weeks. Both indexes had their lowest closings of the year.
This has become a classic trader's market as spikes in volatility and increasingly bearish headlines reverberate.
The worst month for the S&P 500 since the Pandemic took hold was March 2020. The S&P tanked 8.8% in April, while the DOW finished 4.9% lower.
The selling was even more extreme in the tech-laden index, which plummeted in April. The decline was caused by under performance from large tech companies.
The hope of a soft landing is being hampered by the fact that a decidedly more hawkish Fed, coupled with still intractable supply chain issues, and rising energy prices, may make it difficult.
Amazon and Meta have lost more than 10% over the last month. Tech stocks have been hit hard since their often-elevated valuations and promise of future growth begin to look less attractive in a rising-rate environment.
The Federal Open Market Committee will issue a statement on monetary policy on Wednesday. The decision will be made at 2 p.m. The Federal Reserve Chairman is holding a press conference.
With the Fed widely expected to deliver a 50 basis point hike next week, investors are not likely to be comfortable with the technology names' outlooks.
The April jobs report will be released on Friday.
A number of companies are set to post results in the coming week, including a host of consumer-focused restaurant and travel companies.
Some of the names on the list are: Expedia, MGM Resorts, Pfizer, Starbucks, Lyft, Marriott, Yum Brands, eBay and TripAdvisor.
According to data from Refinitiv, 80% of the S&P 500 companies that have reported earnings so far have beaten estimates.
All Rights Reserved © 2024
