Stock futures rise after the Dow falls for the eighth week in a row in a relentless sale
Traders on the NYSE, May 20, 2022.
Source: NYSE
Stock futures rose overnight on Sunday after the Dow Jones Industrial Average fell for its eighth week in a row amid broader market sales.
Futures on the Dow’s industrial average scored 170 points, or 0.57%. S&P 500 futures rose 0.7% and Nasdaq 1[ads1]00 futures rose 0.7%.
The movements came after the S&P 500 dived into the bear market’s territory on Friday on an intraday basis. While the benchmark index was down 20% at one point, it did not close in a bear market after a comeback late in the day.
In Friday’s regular trading session, the S&P 500 closed 0.01% higher at 3,901.36 after falling as much as 2.3% earlier in the session. The Dow index added 8.77 points to 31,261.90 after falling as much as 600 points, and the Nasdaq was 0.3% lower.
The S&P 500 is currently 19% lower than the record high, while the Dow is down 15.4%. Nasdaq is already deep in the bear market, down 30% from the highest.
Last week marked the Dow’s first eight-week losing streak since 1923, while the S&P 500 limited a seven-week losing streak, the worst since 2001.
Nasdaq saw its seventh negative week in a row for the first time since March 2001. The technology-heavy index also saw its lowest intraday level since November 2020 on Friday.
Eight out of 11 sectors ended the week in red, led by consumer goods, which fell 8.63% and had its worst weekly performance since March 2020. Energy ended the week at the top, with an increase of 1.09%. Discretionary and communication services for consumers also ended the week with more than a 32% discount on their 52-week highs.
“Investors are trying to grasp what is happening and are always trying to guess what the outcome is,” said Susan Schmidt of Aviva Investors. “Investors hate, and markets hate uncertainty, and this is a period where they have no clear indication of what is going to happen to this push-pull between inflation and the economy.”
Investors are looking forward to a new group of earnings this week, including a number of major retail names. Zoom Video is set to report results on Monday, followed by Costco, Nvidia, Dollar General, Nordstrom and Macy’s later this week.
