US futures fell on Monday night after key averages produced a major reversal to start the month.
Dow Jones Industrial Average futures fell 57 points, or 0.2%. Futures for the S&P 500 and Nasdaq 100 were down 0.2% and 0.3%, respectively.
Earlier in the day, the major averages posted a wild session of gains and losses with the Nasdaq Composite gaining 1.63% in a late-day bounce, despite a 1.07% drop earlier in the day. The S&P 500 index gained 0.57% after hitting its latest 2022 low earlier in the session.
Meanwhile, the Dow Jones Industrial Average rose 84 points, or 0.26%. At the session low, the Dow fell more than 400 points.
These moves come after a brutal month in April for stocks. April was the worst month since March 2020 for the Dow and S&P 500. It was the worst month for Nasdaq since 2008.
Yields on the benchmark 10-year Treasury note also rose to a new milestone on Monday. Bond yield gain 3.01% in sessionThe highest level since December 2018.
Tim Lesko, director and senior financial advisor at Mariner Wealth Advisors, said Monday on CNBC’s “Closing Bell,” “I think it’s really hard to try to pick bottoms in the market or pick tops in the markets.” “. “I think what we’re seeing is that over the long term, we’ve got a very high stock allocation, people are starting to rebalance, and there’s some stock competition right now in the market.”
Wall Street is expecting interest rates to be raised to 50 basis points at this week’s Federal Reserve meeting. Some investors believe that expectations of aggressive monetary tightening from the central bank have been priced into the market.
“With tightening financial conditions as they are now, we think the Fed will be a bit more dovish than what markets are expecting,” said Eric Johnston, head of equity derivatives. and cross-asset products at Cantor Fitzgerald, said Monday on CNBC “Closing Bell.”
The Federal Open Market Committee will issue a statement at 2 p.m. ET on Wednesday. Fed Chairman Jerome Powell is scheduled to hold a press conference at 2:30 pm
Several consumer-oriented companies are still reporting earnings this week. Shares of Avis Budget jumped more than 6% in extended trading after the car company beat end-to-end earnings expectations. Soaring travel demand has spurred investors to rent cars from Avis Budget despite the higher prices.
Chegg’s share price fell nearly 30% in extended trading after the textbook company issued weak guidance for the full year despite beating earnings expectations.
International restaurant brand, Pfizer and Paramount Global is set to report earnings before the bell on Tuesday. Airbnb, AMD, Lyft and Starbucks is expected to report earnings after the bell the same day.
Traders will also keep an eye on the latest Job Openings and Labor Turnover (JOLTS) data reading scheduled for 10 a.m. ET on Tuesday. Auto sales data for April is also expected on Tuesday.
