Traders on the NYSE floor, May 23, 2022.
Source: NYSE
The S&P 500 futures rose Monday night as Wall Street tried to take advantage of last week’s momentum.
Futures Dow Jones Industrial Average gained 36 points, or 0.1%. Futures S&P 500 and Nasdaq 100 were up 0.3% and 0.8%, respectively. The US stock market did not open on Monday due to the Memorial Day party.
These moves follow the best weekly earnings of the Dow and the S&P 500 since November 2020.
The Dow closed down 6.2% during the week, ending an eight-week losing streak. The S&P 500 gained 6.5% and the Nasdaq gained 6.8% during the week, ending positive after seven consecutive weeks of losses. The solid gains in the retail sector, as well as an inflation report showing that prices could be falling, boosted investor sentiment.
Part of last week’s gains came on Friday, when the Dow recovered more than 550 points and the S&P 500 rose 2.5%. The Nasdaq, meanwhile, rebounded 3.3%, driven by strong reports from tech companies, as well as a 10-year drop in Treasury yields.
However, traders continue to deliberate on whether the rebound marks a bottom, as stocks remain well above their highs. The Dow is 10.1% below its 52-week high, the S&P 500 is down 13.7% and the Nasdaq is about 25.2%.
“We could get some abrupt changes in stocks that won’t represent a real turning point for the market,” Strategas investment strategist Ryan Grabinski said in a report Friday. “Building a bear market is a process, and we could slow it down even more.”
Traders will review the most corporate quarterly earnings during a shortened holiday week. Salesforce, HP and Victoria’s Secret are expected to report earnings on Tuesday after the bell.