Stock futures fall after the S&P 500 posted a 4-day losing streak

Traders work on the floor of the New York Stock Exchange (NYSE) on January 7, 2022 in New York City.

Spencer Platt | Getty pictures

Stock futures were lower overnight on Sunday after a difficult start to 2022 for stock markets as interest rates rose.

Futures on the Dow Jones Industrial Average fall around 1[ads1]30 points, or 0.4%. S&P 500 futures fell 0.4% and Nasdaq 100 futures lost 0.3%.

The three major stock averages all fell in the first week of the year. The S&P 500 fell 0.4% on Friday for its first four-day losing streak since September. The Nasdaq Composite fell 0.9%, also posting four straight days of losses. The Dow Jones Industrial Average lost 4.81 points.

Equities, especially high-growth names, have struggled as interest rates tick higher. The 10-year government interest rate peaked at 1.8% on Friday, in a race after closing at 2021 at 1.51%.

“When we started 2022 this week, trading attention fell on a definite rotation to value and pro-cyclical stocks and out of growth as investors digested an environment with sharply higher prices,” Goldman Sachs’ Chris Hussey said in a Friday note.

Rising interest rates come as the Federal Reserve signaled that it could repel simple monetary policy more aggressively than some expected. Minutes from the Fed’s December meeting, which was published on Wednesday, showed that the central bank plans to shrink the balance sheet in addition to raising interest rates.

Investors are waiting for important inflation reports in the coming week. The consumer price index is set for publication on Wednesday and the producer price index is set for Thursday.

Federal President Jerome Powell is scheduled to testify Tuesday during his nomination hearing for a Senate panel, while the hearing on Fed Governor Lael Brainard’s nomination for the position of deputy is set for Thursday.

Delta Air Lines reports earnings on Thursday and financial heavyweights JPMorgan Chase, Citigroup and Wells Fargo announce quarterly results on Friday.

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