Traders on the floor of the NYSE, May 6, 2022.
Stock futures were higher Sunday night after a week of steep losses that ended at a high level, and ahead of a major earnings week for retailers.
Futures related to the Dow Jones Industrial Average rose 89 points, or 0.3%, while S&P 500 futures increased by 0.4%. Nasdaq 100 futures rose 0.6 percent.
On Friday, the Dow rose 466.36 points, or 1[ads1].47%, while the S&P 500 rose 2.39%. Nasdaq Composite jumped 3.82% and posted its strongest one-day gain since November 2020. Nevertheless, all three averages showed losing weeks.
The gains came when investors went into relief rally mode to end a bad week for stocks where the S&P 500 almost went down in bear market territory.
However, it remains to be seen how long the rally will last or how much additional shares will have to fall before this year’s downward trend falls.
“Given the history of bear markets, combined with the fact that the Fed has just begun its cycle of rate hikes and wants to see financial conditions continue to tighten so that demand recedes further, this upturn is likely to weaken,” said Quincy Krosby. , Head of Equity Strategy for LPL Financial.
Still, some investors and analysts say, whether the bottom is in or not, there are good buying opportunities at the market’s current lowest level.
“I do not call the bottom here, but there is a certain opportunity here to achieve average dollar cost,” Sylvia Jablonski, CEO and chief investment officer of Defiance ETFs, told CNBC. “If you’re sitting on a pile of money, you lock in losses due to inflation. Investing in stocks or asset classes slot tergacor that you believe in … that’s the least evil. Sales fatigue will decrease, the market will reset. It’s unlikely that the Dow and S&P will be in the correction area for six months to a year from now. ”
The retail earnings season kicks off this week with several major retailers reporting first-quarter results, including Walmart, Target and Home Depot. Elsewhere, Deere is also on deck, along with a handful of technology companies.
Investors will also look at retail sales data this week, which may give them insight into how traders are handling inflation, which is still close to 40-year highs.