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Equity futures flat after S & P, Nasdaq starts week in the red

The trader is working on the floor of the New York Stock Exchange (NYSE) in New York City, USA on May 13, 2022.

Brendan MacDermid | Reuters

US stock index futures were flat during Monday night trading after a volatile session where the S & P 500 and Nasdaq Composite continued to decline.

Futures contracts related to the Dow Jones Industrial Average were flat. S & P 500 futures were slightly higher and Nasdaq 100 futures rose 0.13%.

in the meantime Normal transaction S & P fell 0.39%. Benchmark indexes increased by 0.56% at some point in unstable sessions, but decreased by about 1% in low sessions.

The Dow Jones Industrial Average saw similar fluctuations, but the 30-stock index rose 0.8% at Closing Bell, pushed up by Chevron and UnitedHealth.

On the other hand, the Nasdaq Composite Index had poor session performance due to the continued massacre of high-tech stocks. The tech heavy index has fallen 1.2%, 28% below the daytime highs since 22 November.

“In a sense, the poor performance of tech and growth companies this year is in return for the impressive returns these market segments have recently enjoyed,” UBS said in a note to its clients Monday.

After that, the tailwind of the pandemic, that is, the surge in home spending and low interest rates, turned into a headwind. Currently, consumer spending is changing and interest rates are rising.

“I think long-term interest rates have peaked so far, but growth stocks are still higher than value stocks,” UBS added.

Investors also focused on key economic data on Tuesday, with retail sales reaching 8:30 am (Eastern Standard Time), followed by industrial production in the morning.

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Inflation concerns are becoming more and more headwinds for equities, and some investors are concerned that the economy could eventually fall into recession.

“With clear late-cycle indicators, the risk of slowing economic growth or recession has risen steadily throughout the first four and a half months of the year, but is now beginning to exceed the probability level of causing recession. . Base cases at the end of this year and early next year. ” Darrell Kronck, president of the Wells Fargo Investment Institute, wrote a note on Monday.

The company added that it should ultimately be “a relatively modest reduction in economic growth and a short-term reduction.”

Most of the profit season is in the rear-view mirror, but on Tuesday, many companies such as Wal-Mart, The Home Depot, and JD.com are attending.

As of Friday afternoon, of the more than 90% of S & P 500’s quarterly earnings announcements, 78% were above revenue forecasts and 75% were above revenue forecasts. According to Refinitiv data.

Equity futures flat after S & P, Nasdaq starts week in the red

Source link Equity futures flat after S & P, Nasdaq starts week in the red

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