S&P 500 futures slip following last week’s bounce

Stock Market

Traders on the floor of the NYSE, May 23, 2022.
Source: NYSE

U.S. stock futures rose on Monday night, as Wall Street tried to build on last week’s momentum.

Dow Jones Industrial Average futures rose by 59 points, or 0.2%. S&P 500 and Nasdaq 100 futures climbed 0.4% and 0.8%, respectively. The U.S. stock market didn’t open Monday due to the Memorial Day holiday.

Those moves follow the best weekly gains for the Dow and S&P 500 since November 2020.

The Dow closed up 6.2% for the week, ending an eight-week losing streak. The S&P 500 gained 6.5%, and the Nasdaq gained 6.8% on the week, ending positive after seven continual weeks of losses. Solid earnings from the retail sector, as well as an inflation report that showed prices could be easing, lifted investor sentiment.

A chunk of last week’s gains came Friday, when the Dow rallied more than 550 points, and the S&P 500 popped 2.5%. The Nasdaq, meanwhile, rallied 3.3%, boosted by solid reports from tech companies, as well as a dip in the 10-year Treasury yield.

Still, traders continue to deliberate whether the bounce marks a bottom as stocks remain well off their highs. The Dow is 10.1% below its 52-week high, the S&P 500 is down 13.7%, and the Nasdaq is off by about 25.2%.

“We could get some sharp snapbacks in stocks that won’t represent a true turning point for the market,” Strategas investment strategist Ryan Grabinski said in a Friday report. “The building of a bear market is a process, and we could still decline further.”

Traders will look through more corporate quarterly earnings during a holiday-shortened week. Salesforce, HP and Victoria’s Secret are expected to report earnings on Tuesday after the bell.

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