The stock futures rose after the Dow fell in the 8th week amid endless sell-offs

Traders on the NYSE, May 20, 2022.

Source: NYSE

The stock futures rose in overnight trading on Sunday as the Dow Jones Industrial Average fell in its 8th week of broader market closures.

The Dow Industrial Average futures rose 160 points, or 0.5%. The S&P 500 futures added 0.58% and the Nasdaq 100 futures gained 0.55%.

The move comes after the S&P 500 plunged into bear market on an intraday basis on Friday. Although the benchmark was 20% lower at one point, it did not close the bear market after a late return.

In Friday’s regular trading session, the S&P 500 closed 0.01% higher at 3,901.36 after falling as low as 2.3% at the start of the session. The Dow dropped 8.77 points to close at 31,261.90, down 600 points, and the Nasdaq fell 0.3%.

The S&P 500 is currently at a record high of 19% while the Dow is down 15.4%. The Nasdaq is already deep in the bear market area, down 30% from its high.

Last week marked the Dow’s first eight-week rate streak since 1923, when the S&P 500 narrowed the seven-week losing streak, the worst since 2001.

The Nasdaq saw its seventh negative week in a row for the first time since March 2001. The tech-heavy index also saw its lowest intraday level since Friday, November 2020.

Eight of the 11 sectors ended the week in red, led by consumer staples, which fell 8.63% and had its worst weekly performance since March 2020. Energy rose 1.09% to end the week at the top. Consumer considerations and communication services also finished the week 32% higher than their 52-week high.

“Investors are trying to understand exactly what is happening and are always trying to predict the outcome,” said Susan Schmidt of Aviva Investors. “Investors hate, and markets hate uncertainty, and this is a time when they have no clear indication of what is going to happen with this tug-of-war between inflation and the economy.”

Investors are waiting for a new batch of earnings this week, including an array of big retail names. Zoom Video is set to report results on Monday followed by Costco, Nvidia, Dollar General, Nordstrom and Massey over the weekend.

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