Wednesday, July 24, 2024

S&P 500 futures rose after rebounding last week


Traders on the floor of the New York Stock Exchange, May 23, 2022.

Source: NYSE

S&P 500 futures rose Monday night, as Wall Street tried to build on last week’s momentum.

Dow Jones Industrial Average futures rose 36 points, or 0.1%. S&P 500 and Nasdaq 100 futures rose 0.3% and 0.8%, respectively. The US stock market did not open on Monday due to the Memorial Day holiday.

These moves follow the best weekly gains for the Dow and S&P 500 since November 2020.

The Dow closed 6.2% higher for the week, ending an eight-week losing streak. The S&P 500 rose 6.5%, and the Nasdaq rose 6.8% for the week, ending positively after seven straight weeks of losses. Strong earnings from the retail sector, as well as an inflation report that showed prices could fall, lifted investor sentiment.

Much of last week’s gain came on Friday, when the Dow rose more than 550 points and the S&P 500 rose 2.5%. Meanwhile, the Nasdaq rose 3.3%, buoyed by strong reports from technology companies, as well as a decline in the 10-year Treasury yield.

With that said, traders continue to debate whether the bounce is a bottom as stocks stay off their highs. The Dow is down 10.1% from its 52-week high, the S&P 500 is down 13.7%, and the Nasdaq is down about 25.2%.

“We could get some pretty sharp spikes in stocks that wouldn’t represent a real turning point for the market,” said Ryan Grabinsky, investment analyst at Strategas, in a report on Friday. “Building a bear market is a process, and we can still pull back more.”

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Traders will see more quarterly corporate earnings during the short holiday week. Salesforce, HP and Victoria’s Secret are all expected to report earnings Tuesday after the bell.