US stock index futures were little changed in overnight trading on Monday, after a volatile session saw the Dow erase more than 1,100-point declines to end the day in positive territory. .
Futures contracts tied to the Dow Jones Industrial Average rose 19 points. S&P 500 futures were flat, while Nasdaq 100 futures were down 0.1%.
Transparent regular transactions, the Dow rose 99 points, or 0.3%, and began a six-day losing streak. At the intraday low, the benchmark of 30 stocks fell 3.25%. The S&P 500 index gained 0.28% in its first positive session of the year, after losing nearly 4% earlier in the day. At one point, the benchmark index fell into a correction, down 10% from its January 3 close.
The Nasdaq Composite rose 0.6%, reversing a 4.9% drop from earlier in the day. This comeback is the first time the tech-heavy index has returned to a 4% drop to end higher since 2008.
Lindsey Bell, Ally’s currency and market strategist, said Monday on CNBC’s. “Closed bell.” “Things are looking a bit strained against the oversold side, so it’s not surprising. But that doesn’t mean we’ll be clear… there’s a lot that we have to do during the week. hey,” she said
Finally, Bell said the uncertainty is here to stay until the Fed starts raising rates.
The Federal Reserve’s Open Market Committee will begin its two-day meeting on Tuesday, with a rate decision scheduled for Wednesday at 2 p.m. ET. The Fed is not expected to start raising rates, so investors will be watching for signs of when the Fed will start raising rates and the pace of those hikes.
“We’re in what I call a triple threat… rates are rapidly rising and the market has been working overtime, like all algorithms, to try to figure out if that’s possible. what that means and what that pace means for valuations and global equities,” Alli McCartney of UBS Private Wealth Management told CNBC on Monday.
“Today is speculative,” she said, before adding that while volatility continues, the market narrative is starting to shift to one of the stocks that support strong earnings growth.
Monday’s volatility follows the S&P 500’s worst week since the pandemic hit in March 2020. Both the Dow and S&P 500 are on track for their worst month since March 2020. .
Appalled by rising rates, investors have pivoted away from high-growth areas of the market in favor of safer bets. The yield on the benchmark 10-year Treasury note stood at 1.769 percent on Monday.
The tech-heavy Nasdaq Composite was hit particularly hard and fell into a correction last week. So far, the index is down 11.4% this year, trailing the S&P and Dow, which are down 7.5% and 5.4%, respectively.
John Lynch, chief investment officer at Comerica Wealth Management, said: “Considering expectations of economic returns and corporate profits… He added: “However, an assessment of the technical landscape Technical and fundamental shows that a bottom is forming.
Several earnings reports will be released on Tuesday before the market opens, including Johnson & Johnson, 3M, General Electric, American Express and Verizon.
Microsoft will report earnings after the market close, along with Texas Instruments, among others.
