S & P 500 futures Lose a week on Wall Street Investors abandoned shares in fear of a new Omicron Covid variant and a move to tighten policies in the Federal Reserve.
Sunday’s Nasdaq stock futures were sluggish as investors continued to rethink their ownership of highly rated tech stocks after Bitcoin’s sharp fall over the weekend.
Futures contracts related to the Dow Jones Industrial Average rose 163 points, or 0.5%. S & P 500 futures were 0.35% higher. Nasdaq 100 futures were floating around the flat line.
The Dow and S & P 500 fell 0.17% and 0.84% on Friday, respectively. The Nasdaq Composite index slid 1.92%, resulting in poor performance.
Tesla was Friday’s tech-heavy Nasdaq’s biggest resistance, with electric car company stocks declining by more than 6%.
Cathie Wood’s flagship Ark Innovation Fund has slid over 5% and all holdings of the fund are now Bear market other than 2 shares.. Teladoc Health, Zoom Video, Roku, Palantir, and Twilio are some of the names that recorded sudden losses.
Mass sales of tech stocks have expanded into the world of cryptocurrencies, whose prices have fallen. Bitcoin Traded for about $ 57,000 on Friday morning, but by Saturday Plump to about $ 43,000..By Sunday, the world’s largest cryptocurrency Regained some of that loss, But it was still traded under the major $ 50,000 level.
Unexpected slower employment growth also contributed to Friday’s broader market sales.The number of non-farm payrolls 210,000 last monthThe Ministry of Labor said Friday, which was less than expected by the 573,000 economists surveyed by Dow Jones.
“Softer payroll printing pulled the rug under risk sentiment,” TD Securities said in a note to clients Friday. Yields on 10-year government bonds fell to 1.335%, the lowest since September 21, as investors escaped safely.
The unemployment rate was 4.2%, which was higher than expected from 4.6% in October. According to Dow Jones, economists predicted a 4.5% read.
Jeffrey Buchbinder, Equity Strategist at LPL Financial, said: “Omicron may hold back employment a bit next month or two, but we are confident in the strong employment growth and above-average growth expectations of the US economy in 2022,” he added.
Friday’s sell ended the volatile week of the major average as investors evaluated new information about the Omicron variant.
The Dow has recorded four consecutive negative weeks for the first time since September 2020, with all three major averages ending the week in the red. Both the S & P and the Nasdaq Composite have fallen for the second straight week.
The name of the small cap was particularly hard hit, and the Russell 2000 fell 3.86% that week.
“Despite the flat year forecasts for the S & P 500, market pockets, including small caps, are still bullish,” Bank of America said in a note to clients on Friday. “Small caps are more domestic, exposed to recovery in service spending, are larger beneficiaries of fixed investment / reshoring, and are cheaper than large caps,” the company added.
However, Bank of America said the potential rise in small caps depends on Covid’s case being under control.
A variant of Omicron was discovered At least 15 US states, CDC Director Dr. Rochelle Walensky told ABC News on Sunday.
“We know there are dozens of cases and we track them closely, and as we hear about more and more possible cases every day, that number can grow. There is sex, “she said” this week. “
S & P 500 futures are up slightly despite recent tech stock sales and Bitcoin weekend routs
Source link S & P 500 futures are up slightly despite recent tech stock sales and Bitcoin weekend routs