Stock futures fell on Monday as the market attempts to rebound from a relentless sell-off that’s punished tech stocks and pushed the S&P 500 to the brink of a bear market.
Futures tied to the Dow Jones Industrial Average slipped by 43 points, or 0.1%, following 7 straight weeks of losses for the average. S&P 500 futures fell 0.4% after the benchmark nearly fell into a bear market last week before a Friday rebound. Nasdaq-100 futures were down 0.5%.
Monday’s losses come after a comeback attempt on Friday, where the Dow rose 466.36 points, while the S&P 500 climbed 2.39%. The Nasdaq Composite jumped 3.82% and posted its strongest one-day gain since November 2020.
But major averages still posted steep losses for the week. The Dow’s losing streak is its worst since 2001. The S&P 500 is on its first 6-week losing streak since June 2011.
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“Given the history of bear markets, coupled with the fact that the Fed has just begun its rate hike cycle and would like to see financial conditions continue to tighten so that demand pulls back further, [Friday’s] rally will most likely weaken,” said Quincy Krosby, chief equity strategist for LPL Financial.
The S&P 500 sits 16% off its record high, while the Nasdaq Composite is down more than 27% as investors hit growth stocks trading with lofty valuations the hardest as interest rates spiked.
Still, some investors and analysts say, whether or not the bottom is in, there are good buying opportunities at the market’s current lows.
“I’m not calling the bottom here, but there’s some opportunity here to dollar cost average,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs, told CNBC. “If you’re sitting on a bunch of cash, you’re locking in losses because of inflation. Investing in equities or asset classes that you believe in… it is the lesser evil. The selling fatigue will wane, the market will reset. It’s unlikely the Dow and the S&P are going to be in correction territory six months to a year from now.”
Retail earnings season kicks off this week with several big-box retailers set to report results for the first quarter, including Walmart, Target and Home Depot. Elsewhere, Deere is also on deck, along with a handful of technology companies.
Investors will also have their eye on retail sales data this week, which could give them insight into how retailers are managing inflation, which remains near 40-year highs.
Spirit Airlines shares surged by 20% in premarket trading after JetBlue announced a tender offer to acquire the airline for $30 a share.
