U.S. stock futures point to wobbly February start after worst month since start of pandemic
U.S. stock index futures pointed to a softer start for Wall Street as the month of February kicked off, after the worst month since March 2020, with manufacturing data due Tuesday and more earnings reports from Exxon Mobil, Alphabet and General Motors.
How are stock-index futures trading?
S&P 500 futures
fell 0.2% to 4,493
Dow Jones Industrial Average futures
dropped 0.2% to 34,932
eased 0.1% to 14,889
On Monday, the Dow industrials
finished 406.39 points, or 1.2%, higher at 35,131.86 and dropped 3.3% for January, the biggest monthly fall since November 2021. The S&P 500
rose 1.9% to 4,515.55, logging a 5.3% monthly drop, the biggest since March 2020.
The Nasdaq Composite Index
slid 9% decline in January, also the biggest monthly drop since March 2020, and the worst January performance since 2008, according to Dow Jones Market Data. The index rallied 3.4% to 14,239.88 on Monday, though.
Read: Bears beware. Past corrections for the S&P 500 are only 15% on average, outside of recessions
And: Market corrections are good buying opportunities, says Goldman Sachs — but only when this happens
What’s driving the markets?
Investors on Tuesday indicated some hesitancy to follow up Monday’s strong gains, which were a bright note after a dismal January performance for stocks, as investors fretted in part over worries about the prospects for higher U.S. interest rates. European markets gained on back of Wall Street’s rally, even amid Wall Street’s follow-through struggle. Chinese and some other Asian markets were closed for the Lunar New Year holiday.
“Investors continue to buy the dips almost everywhere this week, with market sentiment boosted by a strong earning season so far where most companies have beaten expectations,” said Pierre Veyret, technical analyst at ActivTrades, in a note to clients.
“Technically speaking, most indexes have registered solid rebounds over major support zones and are now challenging key resistance levels. If cleared, these resistances could open the doors to an extended rally, potentially driving prices up to new record highs on the short to midterm basis,” he said.
The yield on the 10-year Treasury note
fell 2 basis points to 1.756%, with oil prices softer
and the ICE U.S. Dollar index
On the U.S. data front, investors will get the Institute for Supply Management’s manufacturing index for January, along with job openings and construction spending for December, all at 10 a.m. Eastern Time.
Tuesday also marks a big earnings reporting day, with Stanley Black & Decker
United Parcel Service
and Exxon Mobil
due to announce results ahead of the open. Investors will get more big technology earnings after Tuesday’s close from Google-parent Alphabet
along with PayPal
and Advanced Micro Devices
will also report.
Read: You can still find a haven in tech stocks: These 20 offer the safety net of highly stable profits
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