Traders on the NYSE floor, April 14, 2022.
Source: New York SE
US stock futures fell Sunday night amid a four-week losing streak for the Dow Jones Industrial Average as investors weighed the likelihood of rising interest rates. Wall Street is also bracing for a stacked week of gains, including reports from big tech companies like Amazon and Apple.
Dow Jones Industrial Average futures fell 36 points, or 0.1%. S&P 500 futures fell 0.2% and Nasdaq 100 futures fell 0.2%.
These moves come after Friday’s sell-off, when the Dow fell 981.36 points, or 2.8%, to 33,811.40 on the Dow’s worst day since October 2020. The S&P 500 fell 2.8% to 4,271.78, its worst day since March. The Nasdaq Composite fell 2.6% to 12,839.29.
All major moving averages closed lower last week, with the Dow down 1.9% this week, or its fourth straight weekly decline. The S&P 500 and Nasdaq fell 2.8% and 3.8% respectively this week, posting their third straight weekly decline.
“There has been severe damage in many areas of the market as money has flowed into perceived ‘defensives’ such as utilities, staples, pharmaceuticals and even mega-cap growth,” said Jonathan Krinsky, chief market technician at BTIG. “Despite their strong momentum, these areas are now trending down while the low momentum names continue to trend down.”
Investors will be watching Twitter, which is said to be reconsidering Elon Musk’s takeover bid after the billionaire investor announced it had secured $46.5 billion in funding, according to a Wall Street Journal report citing to unnamed sources.
Wall Street is also bracing for the busiest week in corporate earnings season yet. About 160 companies in the S&P 500 are expected to report earnings this week, and all eyes will be on reports from big tech companies including Amazon, Apple, Google parent Alphabet, Meta Platforms and Microsoft.
Coca-Cola is expected to call before the bell on Monday, with a management call set at 8:30 a.m. ET. Other companies reporting Monday include Activision Blizzard, Otis, Whirlpool and Zions Bancorp.
Traders are also looking forward to a key inflation reading this week. The Personal Consumption Spending Index will be released before the bell on Friday. In February, core PCE rose 5.4%.