Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA on May 13, 2022.
Brendon McDermide | Reuters
US stock index futures were flat during Monday night’s trading, after a volatile session that saw the S&P 500 and Nasdaq composite continue their March low.
Futures contracts with the Dow Jones Industrial Average were flat. The S&P 500 futures were slightly higher, with the Nasdaq 100 futures adding 0.13%.
S&P declined 0.39% during regular trading. In a volatile session the benchmark index increases 0.56% at one stage, while decreases by about 1% during the short session.
The Dow Jones Industrial Average has seen a similar swing, although the 30-stock index gained 0.8% at the closing bell, boosted by Chevron and United Health.
The Nasdaq Composite, meanwhile, was the lower performer of the session as the killing continued in tech stocks. The tech-heavy index ended the day 1.2% lower, and is now down 28% from its all-time high intraday since November 22nd.
“In a sense, this year’s poor performance for technology and growth companies is partly due to the impressive returns that these market segments have recently enjoyed,” UBS said in a note to clients on Monday.
The epidemic’s tailwinds – the cost of living at home and a jump in low interest rates – have become headwinds ever since. Now, consumer spending is shifting and rates are rising.
“While we believe that long-term interest rates are at an all-time high, rising stocks are still more expensive than price stocks,” UBS added.
Investors will also look at Tuesday’s key economic data, with retail sales numbers hitting 8:30 AM ET and industrial production numbers following in the morning.
Inflation concerns have been a mounting headwind for stocks, with some investors worried that the economy could eventually head into recession.
“We are seeing clear late-cycle indicators, and while the risk of economic growth contraction or recession has steadily increased over the first four-and-a-half months of this year, we are now beginning to cross a potential level that creates recession. For the end of this year and the next A base case, “Darrell Cronk, president of the Wells Fargo Investment Institute, wrote in a note on Monday.
The agency added that in the end it should be a “relatively mild economic growth contraction and a short-term one.”
With most of the revenue season in the rearview mirror, several companies are calling for Tuesday, including Walmart, Home Depot and JD.com.
As of Friday afternoon, more than 90% of the S&P 500 posted quarterly results, 78% exceeded company earnings expectations while 75% topped the revenue forecast, according to Refinitiv.