S&P 500 futures fell slightly on Monday as the market tried to recover from an unrelenting sell-off that has punished technology stocks and pushed the broader index to the brink of a bear market.
Futures tied to the Dow Jones Industrial Average are little changed after 7 consecutive weeks of losses for the average. S&P 500 futures fell 0.1% after the benchmark nearly fell into a bear market last week ahead of a rebound on Friday. Nasdaq 100 futures fell 0.3%.
Monday’s losses come after a comeback attempt on Friday, which saw the Dow rise 466.36 points while the S&P 500 climbed 2.39%. The Nasdaq Composite rose 3.82%, posting its strongest one-day gain since November 2020.
But the major averages still posted steep losses for the week. The Dow’s losing streak is its worst since 2001. The S&P 500 is in its first 6-week losing streak since June 2011.
“Given the history of bear markets coupled with the fact that the Fed has just started its rate hike cycle and wants financial conditions to tighten further so that demand continues to fall, [Friday’s] The recovery will most likely weaken,” said Quincy Krosby, chief equity strategist at LPL Financial.
The S&P 500 is down 16% from its record high, while the Nasdaq Composite is down more than 27% as investors hit growth stocks, which are trading at high valuations, the hardest as interest rates soared.
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Still, some investors and analysts say there are good buying opportunities at the market’s current lows, whether the bottom is in or not.
“I’m not calling bottom here, but there is some opportunity here to lower the average dollar cost,” Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs, told CNBC. “If you’re sitting on a pile of cash, you’re locking in inflation losses. Investing in stocks or asset classes you believe in is the lesser evil. Selling fatigue will subside, the market will reset. The Dow and S&P are unlikely to be in correction territory in 6 months to a year.”
The retail earnings season kicks off this week with several major retailers set to report first-quarter results, including Walmart, Target and Home Depot. Elsewhere, Deere is also on deck along with a handful of tech companies.
Investors will also be keeping an eye on retail sales data this week, which could give them insight into how retailers are dealing with inflation, which remains near 40-year highs.
Spirit Airlines shares were up 20% in premarket trading after JetBlue announced a bid to acquire the airline for $30 a share.
Carvana’s share price rose 12% in premarket trading Monday after the used-car company released strong core earnings guidance for 2023 and outlined a plan to cut costs.