Traders work on the ground of the Latest York Stock Exchange (NYSE) during morning trading on February 01, 2023 in Latest York City.
Michael M. Santiago | Getty Images
U.S. equity futures were little modified Sunday evening after the foremost averages posted their biggest weekly losses of the 12 months and ahead of one other big week in retail earnings.
Futures tied to the Dow Jones Industrial Average slipped 16 points, or 0.04%. S&P 500 futures eased 0.01% and Nasdaq 100 futures dipped barely below the flat line.
The key averages Friday ended the day lower and posted their biggest weekly declines for 2023. The Dow finished lower by 3%, its fourth down week in a row. The S&P 500 lost 2.7% and the Nasdaq Composite fell 3.3% for the week.
Stocks sank Friday and Treasury yields jumped following a bigger-than-expected increase in the newest reading for private consumption expenditures, the Federal Reserve’s preferred inflation gauge.
The early 2023 rally appears to be fading as investors absorb the minutes of the newest Fed meeting, which reiterated the central bank’s tough stance on inflation, in addition to recent comments from Fed officials cautioning rates of interest could rise higher and for longer than anticipated.
“As we head right into a seasonally weak period, with bets rising that the Fed may go together with a 50bps increase as a substitute of a 25bps in March, though still a minority opinion, the short-term market risk stays to the downside despite three straight weeks of losses,” said Louis Navellier, chairman and founding father of growth investing firm Navellier & Associates. “The bears are dusting themselves off after getting sacked in January.”
Within the week ahead, investors will likely be searching for clues about how inflation is affecting consumers and businesses amid a handful of economic data reports and company earnings. Durable goods orders are due out Monday morning. Consumer confidence and the ISM manufacturing survey are also on deck in the approaching week.
In earnings, just 6% of the S&P 500 will report but investors are searching for insight into the patron with several major retailers, restaurants, some travel and entertainment names in addition to food corporations set to report. Goal, Costco, Lowe’s and Macy’s are a number of the big names set to report earnings this week.