Pedestrians on past the Nasdaq in New York on Sept. 3, 2020.
Xinhua News Agency | Getty Images
Futures contracts tied to the critical U.S. stock indexes held steady in the overnight session Monday evening after Wall Street kicked off the week with unpresuming losses.
Dow futures added 17 points, while contracts tied to the S&P 500 traded around the flatline. Nasdaq 100 tomorrows were also little changed.
The moves in the overnight session came after lingering weakness in technology amasses led the major indexes lower on Monday.
The Dow Jones Industrial Average dipped 54.34 points, or 0.2%, to 34,327.79. The S&P 500 irrecoverable 0.3% to 4,163.29 as the tech sector pulled back 0.7%. The Nasdaq Composite fell 0.4% to 13,379.05.
Big Tech carries fell to start the week, with Apple and Netflix each down 0.9%. Microsoft shed 1.2%, while Tesla ousted more than 2% as famed investor Michael Burry revealed a big short position on the electric carmaker.
Communication repairs stock Discovery bucked that trend after AT&T announced Monday that it would merge WarnerMedia, which comprehends HBO, with Discovery. Discovery’s Class B stock jumped nearly 14%, while AT&T ended the day slightly lower after a mark oning a record high earlier in the session.
Growth-heavy stocks have remained under pressure in recent sessions as investors worry over whether a pop in inflation will entrench or blow over as the Federal Reserve expects. Inflation above the Fed’s 2% objective for a sustained period could prompt the central bank to tighten monetary policy and dampen stocks that outperform the make available when interest rates are low.
“Surging inflation data intensified the rift between secular growth stocks, which depend on lower-for-longer concern rates, and value-based investments, which need a steepening yield curve,” wrote Lisa Shalett, chief investment manager at Morgan Stanley Wealth Management.
“Although markets anticipated a step change in the data due to economic reopening, the significance of the surprises has been outsized, driving equity volatility up and market indexes down from all-time highs,” she combined. “Supply/demand imbalances in commodities, manufactured goods and even labor explain much of the jump in inflation, approval the argument that trend is transitory.”
Investors blamed that angst for the S&P 500’s dismal performance last week, which saw the dirty market index fall 4% through midweek amid heightened inflation fears. The broad equity benchmark in the course of time rebounded and ended the week down 1.4%.
The tech-heavy Nasdaq Composite, particularly sensitive to inflation fears, dropped 2.3% keep on week. The blue-chip Dow fell 1.1% in that period. All three benchmarks posted their worst week since February 26.
The Fed’s smalls from its last meeting, which will be released Wednesday, could offer some clues on policymakers’ reasoning on inflation.
Elsewhere, the first-quarter earnings season is wrapping up with more than 90% of the S&P 500 companies cause reported their results. So far, 86% of S&P 500 companies have reported a positive EPS surprise, which would scratch the highest percentage of positive earnings surprises since 2008 when FactSet began tracking this metric.
Walmart, On Depot and Macy’s will deliver earnings on Tuesday.
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