Futures on the Dow Jones Industrial Average inched up 120 points, S&P 500 futures jumped 0.5% and Nasdaq 100 futures added 0.9%
Stock futures rose slightly in overnight trading Sunday, following the S&P 500′s worst week since March 2020, as investors awaited more corporate earnings results and a key policy decision from the Federal Reserve.
Futures on the Dow Jones Industrial Average (DJIA) inched up 120 points. S&P 500 futures jumped 0.5% and Nasdaq 100 futures added 0.9%.
The overnight action followed a brutal week on Wall Street in the face of mixed company earnings and concerns about rising interest rates. The S&P 500 shed 5.7% last week and finished below its 200-day moving average, a key technical level, for the first time since June 2020. The blue-chip Dow dropped 4.6% for its worst week since October 2020.
The sell-off in the tech-heavy Nasdaq Composite was even more severe with the benchmark declining 7.6% last week, notching its fourth weekly loss in a row. The index now sits more than 14% below its November record close, falling deeper into correction territory.
The fourth-quarter earnings season has been a mixed bag. While more than 70% of S&P 500 companies that have reported results have topped Wall Street estimates, a couple of key firms let down investors last week, including Goldman Sachs and Netflix.
What had initially been a stimulus withdrawal-driven decline morphed last week to include earnings jitters, Adam Crisafulli, founder of Vital Knowledge, said in a note. So investors are now worried not just about the multiple placed on earnings, but the EPS forecasts themselves.
IBM is set to report numbers after the bell Monday. Investors will also digest a slew of high-stakes Big Tech earnings, including Microsoft, Tesla and Apple.
Another crucial market driver will be the Fed’s policy meeting, which wraps up on Wednesday. Investors are anxious to find out any signals on how much the central bank will raise interest rates this year and when it will start.