Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 1, 2023 in New York City.
Michael M Santiago | Getty Images
US stock futures were little changed on Sunday night after the major averages posted their biggest weekly losses of the year and ahead of another big week of retail gains.
Futures linked to the Dow Jones Industrial Average fell 16 points, or 0.04%. S&P 500 futures fell 0.01% and Nasdaq 100 futures dipped slightly below the zero line.
Friday’s major moving averages ended the day lower, posting their biggest weekly declines for 2023. The Dow closed 3% lower, down for the fourth straight week. The S&P 500 lost 2.7% this week and the Nasdaq Composite fell 3.3%.
Stocks fell on Friday and US Treasury yields rose after a stronger-than-expected rise in the latest personal spending data, the Federal Reserve’s preferred indicator of inflation.
The early 2023 rally appears to be fading as investors take in minutes from the last Fed meeting, which reiterated the central bank’s tough stance on inflation, as well as recent comments from Fed officials warning that rates could be higher and longer than expected could rise.
“While we are headed for a seasonally weak spell where bets are mounting that the Fed could leave with a 50 basis point hike in March instead of 25 basis points, although this is still a minority view, near-term market risk remains in despite three weeks Follow down losses,” said Louis Navellier, chairman and founder of growth investment firm Navellier & Associates. “The bears are dusting off after being fired in January.”
Over the coming week, investors will look to a handful of economic data reports and corporate earnings for clues as to how inflation is affecting consumers and businesses. Durable goods orders are due Monday morning. Consumer confidence and the ISM manufacturing survey are also due next week.
As for earnings, only 6% of the S&P 500 will report, but investors are looking for consumer insights, with several major retailers, restaurants, some travel and entertainment companies, and food companies reporting. Target, Costco, Lowe’s and Macy’s are some of the big names set to announce earnings this week.