Traders on the NYSE, May 20, 2022.
Stock futures gained in overnight trade Sunday as the Dow Jones Industrial Average dropped for its 8th consecutive week amid a wider market sell-off.
Futures on the Dow industrial average climbed 224 points, or 0.72 percent . S&P 500 futures increased 0.9 percent and Nasdaq 100 futures jumped 1.11 percent .
The changes occurred after the S&P 500 on Friday dropped into bear market territory on an intraday basis. While the benchmark was down 20 percent at one point, it did not conclude in a bear market following a late-day rebound.
In Friday’s regular trading session, the S&P 500 closed 0.01 percent higher at 3,901.36 after plunging as much as 2.3 percent earlier in the day. The Dow added 8.77 points at 31,261.90 after dropping as much as 600 points while the Nasdaq inched 0.3 percent lower.
The S&P 500 presently stands 19 percent off its record high while the Dow is down 15.4 percent . The Nasdaq is already deep in bear market territory, down 30 percent from its peak.
Last week recorded the Dow’s first eight-week losing run since 1923, while the S&P 500 ended a seven-week losing skid, its worst since 2001.
The Nasdaq suffered its sixth losing week in a row for the first time since March 2001. The tech-heavy index also recorded its lowest intraday level since November 2020 on Friday.
Eight of 11 sectors closed the week in the red, topped by consumer staples, which lost 8.63 percent and recorded its worst weekly performance since March 2020. Energy completed the week on top, climbing 1.09 percent . Consumer discretionary and communication services also concluded the week more than 32 percent below their 52-week highs.
“Investors are trying to come to terms with what actually is occurring and constantly attempt to forecast what the result is,” said Susan Schmidt of Aviva Investors. “Investors detest, and the markets hate uncertainty, and this is a moment when they don’t have any clear indicator on what’s going to happen with this push-pull between inflation and the economy.”
Investors are looking forward to a fresh round of results this week, including an assortment of prominent retail brands. Zoom Video is slated to disclose earnings Monday followed by Costco, Nvidia, Dollar General, Nordstrom and Macy’s later in the week.