Equity futures are little changed after the Nasdaq Composite closes at a 2-year low
Traders on the floor of the NYSE, August 8, 2022.
Source: NYSE
US stock futures were little changed on Monday night after the Nasdaq Composite closed at a two-year low during the regular session.
Dow Jones Industrial Average futures rose 20 points, or 0.07%. S&P 500 and Nasdaq 1[ads1]00 futures rose 0.13% and 0.21% respectively.
Stocks closed lower on Monday, with the Nasdaq Composite falling 1% after a drop in semiconductor stocks. The Dow Jones Industrial Average fell nearly 94 points, or 0.3%, while the S&P 500 fell about 0.8%.
Investors weighed comments from JPMorgan CEO Jamie Dimon, who warned the U.S. was likely to slip into a recession in the next “six to nine months” and said the S&P 500 could fall another 20% depending on whether the Federal Reserve develops a soft or a hard landing for the economy.
These comments came at the start of a big week for third-quarter bank earnings, and ahead of Wednesday’s producer price report, Thursday’s consumer price index report for September and Friday’s retail sales figures, also for last month.
Investor reaction is focused solely on how the Federal Reserve will respond to the economy as it works to curb inflation.
“There’s always this idea of a Fed pivot coming right around the corner and they’re just going to tighten the belts to bring down inflation without affecting the economy more broadly,” Dan Greenhaus, chief strategist and economist at Solus Alternative Asset Management, said Monday on CNBC’s “Closing Bell: Overtime.”
“All of this was always hopes and dreams. And the most likely outcome was … what history shows always happens, which is the Fed tightens, they tighten too much, they cause an economic dislocation, the market goes down. Full stop ,” he added.
