US stock futures fell on Monday night after a major average made a big turnaround earlier this month.
Dow Jones Industrial Average futures fell 59 points, or 0.2%. The futures of the S&P 500 and Nasdaq 100 fell 0.2% and 0.3%, respectively.
Earlier in the day, key averages posted a wild up-and-down session, with the Nasdaq Composite up 1.63% on a return at the end of the day, although it fell 1.07% earlier in the day. The S&P 500 rose 0.57% after hitting a new low in 2022 earlier in the session.
Meanwhile, the Dow Jones Industrial Average rose 84 points, or 0.26%. At the lowest values of the session, the Dow fell by more than 400 points.
These moves come amid a brutal month in April for stocks. April was the worst month since March 2020 for the Dow and the S&P 500. It was the worst month for the Nasdaq since 2008.
The reference yield on 10-year bonds also climbed to a new stage on Monday. Bond yields reached 3.01% during the session, its highest point since December 2018.
“I think it’s really hard to try to pick the bottom of the market or pick the top of the market,” said Tim Lesko, director and senior wealth adviser at Mariner Wealth Advisors, on Monday’s CNBC’s Closing Bell. “I think what we see is that in the long run we have a very high distribution of stocks, people are starting to rebalance and now there is competition in the market for stocks.”
Wall Street largely expects interest rates to rise by 50 basis points at this year’s Federal Reserve meeting. Some investors believe that expectations of aggressive monetary tightening by the central bank are already reflected in the markets.
“As the financial situation tightens as it is, we believe the Fed will be a little bluer than the market expects,” Eric Johnston, head of equity derivatives and cross-assets, told CNBC’s Closing Bell on Monday. at the Cantor Fitzgerald. “
The Federal Open Market Committee will issue a statement at 14:00 ET on Wednesday. Fed Chairman Jerome Powell is expected to hold a press conference at 2:30 p.m.
A number of consumer-oriented companies are still reporting profits this week. Shares of Avis Budget jumped more than 6% during extended trading after the car company exceeded earnings expectations at the top and bottom. Delayed travel demand has prompted investors to rent Avis Budget cars despite higher prices.
Chegg’s share price fell nearly 30 percent during extended trading after the textbook company issued weak guidelines for the full year, despite exceeding earnings expectations.
Restaurant Brands International, Pfizer and Paramount Global will report their earnings before the bell on Tuesday. Airbnb, AMD, Lyft and Starbucks are expected to report their earnings after the bell on the same day.
Traders will also keep an eye on the latest reading of job and turnover data (JOLTS), which is expected at 10 a.m. ET on Tuesday. A report on car sales for April is also expected on Tuesday.
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