Traders on the NYSE floor, March 25, 2022.
Source: New York SE
Stock futures were slightly lower on Sunday evening as investors eye a slew of important economic reports and continue to closely monitor the Federal Reserve’s planned rate hikes.
Futures linked to the Dow Jones Industrial Average fell 58 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures were each down 0.1%.
The Dow and S&P rose in the previous session to end their second straight week of gains. The Dow rose 153 points, or 0.4%. The S&P 500 is up 0.5%, more than erasing losses since Russia invaded Ukraine in late February. Meanwhile, the Nasdaq Composite fell 0.2% but still ended the week in the green.
The moves came as investors continue to monitor developments in Russia’s war against Ukraine and expectations about the Fed’s rate hike plans.
“It appears that the commodity price spike has paused and this has given investors a chance to get back into equities,” said Edward Moya, senior market analyst at Oanda. “Geopolitical risks remain very high and the rally in equities over the past two weeks has been impressive. The US economy is still in good shape, but most traders are unlikely to buy every stock market downturn given how hawkish the Fed has turned.”
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Investors continue to keep a close eye on the Fed. Wall Street firms from Goldman Sachs to Bank of America were planning a half-point hike at future Fed meetings this year after Fed Chair Jerome Powell vowed to crack down on inflation and said that rate hikes could become more aggressive if necessary.
On Friday, the benchmark 10-year yield hit a new multi-year high of 2.5% as investors priced in a more aggressive rate hike cycle that helped lift financials while technology stocks fell.
Investors are looking forward to the Job Openings and Labor Turnover Survey (JOLTS) this week. The JOLTS report is a series of employment data that the Federal Reserve is monitoring closely as it tightens monetary policy. ADP will also release its private payroll data ahead of the main show, the closely watched monthly jobs report, on Friday.
Monday is an easy day for earnings reports, but several large companies are expected to report quarterly earnings this week, including BioNTech, Micron and Walgreens Boots Alliance.