Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 13, 2022.
Brendan Mcdermid | Reuters
U.S. stock index futures were flat in overnight trading on Monday, after a volatile session that saw the S&P 500 and Nasdaq Composite continue lower.
Futures contracts tied to the Dow Jones Industrial Average were unchanged. S&P 500 futures were slightly higher, while Nasdaq 100 futures were up 0.13%.
Transparent regular transactions The S&P fell 0.39%. In a volatile session, the benchmark index at one point gained 0.56%, while shedding about 1% at session lows.
The Dow Jones Industrial Average saw similar swings, though the 30-stock index was up 0.8% at the close, pushed higher by Chevron and UnitedHealth.
The Nasdaq Composite, meanwhile, was the worse performer of the session as the ravages of tech stocks continued. The heavy tech index ended the day 1.2% lower and is now 28% below its all-time high for the day since Nov.
“In a sense, the underperformance this year for tech and growth companies is somewhat of a payback for the impressive profits these market segments have enjoyed recently.” , UBS said Monday in a note to clients.
The downsides of the pandemic – a surge in spending at home and low interest rates – have become headwinds. Now, consumer spending is changing and rates are rising.
“While we think long-term interest rates have now peaked, growth stocks are still expensive relative to value stocks,” added UBS.
Investors will also keep an eye on important economic data on Tuesday, with retail sales numbers coming in at 8:30 a.m. ET, followed by industrial production numbers late in the morning.
Concerns about inflation have become a headwind for stocks, with some investors worried the economy could eventually slide into a recession.
“We see clear end-cycle indicators, and while the risk of a contraction in economic growth or a recession has steadily increased over the first four-and-a-half months of this year, we are now starting to break through the pre-determined level.” rates cause a recession, Darrell Cronk, president of the Wells Fargo Investment Institute, wrote in a note Monday.
The company added that it should ultimately be a “relatively mild and short-lived slowdown in economic growth.”
While much of earnings season is in the rearview mirror, a few companies will start operations on Tuesday, including Walmart, Home Depot and JD.com.
As of Friday afternoon, of the more than 90% of the S&P 500 that have released quarterly results, 78% have beat earnings expectations while 75% topped revenue forecasts, according to data from Refinitiv .
