Stock futures tumble after three straight weeks of Dow decline

Stock futures tumble after three straight weeks of Dow decline

U.S. equity futures plunged into overnight trading on Sunday after the Dow Jones Industrial Average posted three straight weeks of losses for the first time since September 2020.

Dow Jones futures fell 114 points, or 0.3%. S&P 500 futures fell 0.3% and Nasdaq 100 futures fell 0.2%.

Stocks struggled in September, a weak season for the market.

The Dow Jones closed Friday’s regular session down 166.44 points, or 0.5%, at 34,584.88. The S&P 500 was down 0.9% to 4,432.99 and the Nasdaq Composite was down 0.9% to 15,043.97.

The S&P 500 on Friday recorded its largest trading volume since July 19, more than double its 30-day average volume. Friday coincided with the expiration of stock options, index options, stock futures and index futures – a quarterly phenomenon known as “quadruple witchcraft.”

The top three averages are negative for the month, but are still within 3% of their all-time highs.

The much-anticipated Federal Reserve meeting in September is scheduled for this week. Fed Chairman Jerome Powell will hold a press conference on Wednesday following the two-day meeting. Investors are awaiting information on the easing of monetary policy by the Fed.

Powell said the so-called tapering could occur this year, but investors are waiting for more details, especially after the release of mixed economic data since Powell’s last comments.

Factors that create a “wall of worry” exist (i.e. China, supply chain issues, Fed policy, debt limits, infrastructure / tax bills. ), although the markets are not too troubled at the moment. That is to be expected, and we will use these times as opportunities, ”said Larry Adam, chief investment officer at Raymond James, in a note.

Investors are also awaiting several key quarterly earnings reports this week, with Adobe, FedEx, Darden Restaurants, Nike and Costco releasing financial results.

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