Nasdaq 100 futures fell slightly Monday night after stocks rebounded in the afternoon and ahead of Big Tech earnings.
Futures tied to the tech-focused index fell 0.1%. Futures on the Dow Jones Industrial Average and the S&P 500 were little changed.
In normal trading on Monday, the Nasdaq Composite added 1.3%. The Dow rose 0.7 percent after a 500-point cut from the start of the day, and the S&P 500 gained 0.6 percent.
The move comes as tech names like Microsoft, Alphabet and Meta Platforms rallied in the afternoon, amid falling interest rates and ahead of a week of high earnings for big tech stocks. Twitter also jumped after its board accept the offer of Tesla CEO Elon Musk to keep it private.
The rally was welcomed by investors after stocks ended last week on a sour note, with the Dow falling for a fourth straight week and the S&P and Nasdaq hitting a three-week losing streak on Friday. The tech-heavy Nasdaq is trying to break out of bear market territory, down 19.8% from its record.
Whether this is a bottom remains to be seen. Edward Moya, senior market analyst at Oanda, told CNBC that there is still a lot of optimism about the US economy and said he anticipates a bounce from here.
“A third of the S&P is reporting [earnings] this week, and you’ll likely see much of the same thing: lots of top and bottom beats. Companies will talk about margin pressure and price increases for consumers, but they will still emphasize that there is still general optimism about the economy. “
Between the continuation of earnings cadence and a period of lull from the Federal Reserve, there is likely to be a rally in the market, Moya added.
“We won’t worry more about the Fed tightening, because we won’t hear much about that until the meeting in May,” he said.
Market bull Tom Lee, head of research at Fundstrat Global Advisors, said that although he expected a “tough” first half of the year, the market has been worse than he expected. , with inflation getting worse than market expectations. However, he remains optimistic.
“When the bond market calls for the Fed to tighten up a little bit, it’s hard for equities to hold and I think that’s what we’re going through, but, I don’t think that means we should sell. stocks here too,” he said on CNBC’s “Closing Bell: Overtime” on Monday.
“The markets just want to know when this might end,” he added. “If inflation doesn’t reach some kind of market-related peak, but I also don’t think inflation will continue to be an issue even in the second half.”
Tech earnings will begin on Tuesday after the bell with Alphabet and Microsoft. Meta, Amazon and Apple will report by the end of the week. UPS and 3M are also scheduled to report in the morning.
In economic data, investors are expecting fresh numbers on new home sales and consumer confidence Tuesday morning.
