Stock futures rise after Dow falls for eight straight week in relentless selling

Traders on the NYSE, May 20, 2022.

Source: NYSE

Stock futures rose in trading overnight on Sunday after the Dow Jones Industrial Average fell for its 8th straight week amid a selloff in the market.

Dow Jones industrial average futures gained 224 points, or 0.72%. S&P 500 futures added 0.9% and Nasdaq 100 futures rose 1.11%.

The moves came after the S&P 500 plunged into bearish territory on an intraday basis on Friday. Although the benchmark was down 20% at one point, it did not close in a bear market after a late-day rally.

In Friday’s regular trading session, the S&P 500 closed 0.01% higher at 3,901.36 after falling 2.3% earlier in the session. The Dow Jones added 8.77 points to 31,261.90 after losing as much as 600 points and the Nasdaq edged down 0.3%.

The S&P 500 is currently 19% off its all-time high while the Dow Jones is down 15.4%. The Nasdaq is already deep in bearish territory, down 30% from its peak.

Last week marked the Dow’s first eight-week losing streak since 1923, while the S&P 500 capped a seven-week losing streak, its worst since 2001.

The Nasdaq experienced its seventh straight negative week for the first time since March 2001. The tech-heavy index also hit its lowest intraday level since November 2020 on Friday.

Eight of 11 sectors ended the week in the red, led by Consumer Staples, which fell 8.63% and had its worst weekly performance since March 2020. Energy ended the week in the lead, up of 1.09%. Consumer discretionary and communication services also ended the week more than 32% off their 52-week highs.

“Investors are trying to figure out what exactly is going on and are still guessing what the outcome is,” said Susan Schmidt of Aviva Investors. “Investors hate it, and markets hate uncertainty, and this is a time when they have no clear indication of what’s going to happen with this push-pull between inflation and the economy.”

Investors are expecting a fresh round of earnings this week, including an array of big names in retail. Zoom Video is expected to report results on Monday, followed by Costco, Nvidia, Dollar General, Nordstrom and Macy’s later in the week.

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