Stock futures are flat with the S&P 500 leaning on the edge of a bear market

Stock futures were little changed on Thursday night as investors braced for the S&P 500 index’s likely slide into official bear market territory.

Futures contracts tied to the Dow Jones Industrial Average fell 9 points, or less than 0.1%. Futures on the S&P 500 and Nasdaq-100 were slightly higher.

Above Wednesday, the S&P 500 and Dow bounced off their intraday lows but were still down 0.1% and 0.3%, respectively. The S&P closed more than 18 percent off its all-time high and would be in a full-fledged bear market if that loss deepens to 20 percent. The Dow fell for six straight trading sessions.

The Nasdaq was up less than 0.1% on Wednesday, but the tech heavyweight index was in a bear market, down more than 29% from its all-time high.

The stock market has been falling for months, starting with high-growth non-yielding tech stocks late last year and spreading to companies with healthy cashflow stocks in recent weeks. On Thursday, Apple falls into a bear market own, becoming the last of the Big Tech names unable to withstand the sell-off.

The drop wiped out much of the rapidly rising stocks that enjoyed the pandemic lows in March 2020.

“Large deviations from the long-term price trend have been used to define bubbles. We find that US stocks have been in a bubble based on this metric and are now coming out of it,” the strategy said. Citi strategist Dirk Willer said in a note to clients on Thursday.

One reason stocks have struggled in recent months is high inflation and the Federal Reserve’s efforts to rein in prices by raising interest rates. Fed Chairman Jerome Powell told NPR on Thursday that he “soft landing” cannot be guaranteed“reduced inflation without causing a recession.

Though stocks enjoyed a two-week rally following the Fed’s first rate hike in March, that gain was quickly wiped out by a brutal April and selling continued. in the May. There are some signs, such as investor sentiment surveys and some stabilization in the Treasury market this week, that the market may be near, but many investors and strategists Analysts say the market may need to take another step down.

“You’re getting this market really begging for a bottom, for a rally. But, at the end of the day, there’s really no top day,” said Andrew Smith, director of investment strategy at Delos Capital. private” Advisors.

The development of cryptocurrencies Wall Street also worried Wall Street this week, with bitcoin falling below $30,000 and stablecoins struggling to hold the peg.

On the economic data front, Friday has April’s import price list and an early look at consumer confidence in May.

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