US stock futures fell, signaling that market turbulence could continue until May, after major indexes registered their worst month since the start of the pandemic.
S&P 500 futures fell 0.3 percent after the broad market index closed 3.6 percent on Friday. Nasdaq-100 futures withdrew 0.5%, pointing to further declines in technology stocks since the start.
Investors expect the Federal Reserve’s meeting on Wednesday to signal more of the pace of monetary tightening, with markets expecting a new rise in interest rates to counter the highest inflation in decades. The war in Ukraine and the outbreak of Covid-19 in China threaten to halt supply chains and raise prices.
“This is a market that is nervous and nervous,” said Sebastien Gally, a macro strategist at Nordea Asset Management. NDA.FI -1.36% “It has been fueled by liquidity for a long time and this has been built into stock expectations,” he said, a situation that is now changing as central banks tighten monetary policy.
The S&P 500 fell 8.8 percent and the Dow fell nearly 5 percent in April, the worst monthly performance since March 2020. The Nasdaq Composite withdrew more than 13 percent last month, its worst performance since October 2008. d. Technology stocks are particularly sensitive to higher interest rates.
The yield on the benchmark 10-year government securities rose to 2.914% from 2.885% on Friday, rising for the fourth consecutive trading session. The US dollar maintained its recent gains as the WSJ Dollar rose another 0.1% after its biggest monthly jump in a decade.
Expedia and Clorox CLX -3.28% should publish results on Monday after markets close. Pfizer, KKR, Airbnb, Starbucks and Lyft are scheduled for Tuesday, and Moderna, Marriott International and Uber for Wednesday. Kellogg and Apollo Global Management are scheduled for Thursday.
The revenue season has been relatively strong so far, with more than 80% of companies reporting so far exceeding analysts’ expectations, according to Refinitiv. Shares fell last month, however, due to nerves for the coming months, investors said.
In pre-market trading, Moody’s shares fell nearly 8 percent after the credit rating company said its profits had fallen by about a third as costs rose.
Oil prices fell. Brent’s global crude oil benchmark fell 3.2 percent to $ 103.67 a barrel. Representatives of the European Union are working on a proposal to sanction Russian energy. Some are skeptical that it will pass, as it requires unanimous support from EU members, many of whom rely on Russian energy, according to analysts at Scandinavian bank SEB. The natural gas figure in Western Europe fell by 3%.
Traders are also watching the blockade in China and expect an OPEC + alliance meeting later this week to discuss a supply agreement.
The Pan-Continental Stoxx Europe 600 decreased by 1.3%. Releases show that retail sales in Germany fell in March, when economists expected an increase and consumer confidence in the EU fell more than expected. Wind turbine maker Vestas Wind Systems fell more than 8 percent after lowering forecasts for the full year and reporting a bigger-than-expected loss due to asset cuts in Russia and Ukraine. The stock market in the United Kingdom was closed due to a holiday.
In Asia, most key indicators have declined moderately. South Korea’s Kospi fell 0.3 percent and Japan’s Nikkei 225 fell 0.1 percent. Markets in China and Hong Kong were closed for Labor Day.
ISM is expected to publish surveys of U.S. purchasing managers in April at 10 a.m.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
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