Traders on the floor of the NYSE, April 14, 2022.
US stock futures fell on 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 earnings, including reports from major tech companies such as Amazon and Apple.
Dow Jones Industrial Average futures fell 0.2%. S&P 500 futures dipped 0.2% and Nasdaq 100 futures declined 0.2%.
Those moves come after Friday’s selloff, with the Dow dropping 981.36 points, or 2.8%, to 33,811.40 in what was the Dow’s worst day since October 2020. The S&P 500 fell 2.8% to 4,271.78, or its worst day since March. The Nasdaq Composite dropped by 2.6% to 12,839.29.
All the major averages closed down lower for the week, with the Dow falling 1.9% for the week, or its fourth straight weekly decline. The S&P 500 dropped 2.8% for the week, posting its third straight decline. The Nasdaq was the laggard this week, losing 3.8%.
“There has been severe damage in many areas of the market, while money rotated into perceived ‘defensives’ like Utilities, Staples, Pharma, and even mega-cap growth,” said Jonathan Krinsky, chief market technician at BTIG. “Those areas, despite their strong momentum, are now unwinding lower, while the low-momentum names continue to trend down.”
Investors will be watching Twitter, which: reportedly is re-examining Elon Musk’s takeover bid: after the billionaire investor disclosed he secured $ 46.5 billion in financing, according: to a Wall Street Journal report, citing unnamed sources.
Wall Street is also bracing for what will be the busiest week yet in corporate earnings season. 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 report before the bell on Monday with a management call set at 8:30 am ET. Other companies reporting on Monday include Activision Blizzard, Otis, Whirlpool and Zions Bancorp.
Traders are also looking forward to a key measure of inflation this week. The personal consumer expenditures index is set to be released Friday before the bell. In February, the core PCE jumped 5.4%.