Traders on the NYSE floor, May 23, 2022.
Source: NYSE
S&P 500 futures rose on Monday night, as Wall Street tried to build on last week’s rally.
Dow Jones Industrial Average futures rose 21 points, or 0.1%. Futures for the S&P 500 and Nasdaq 100 were up 0.3% and 0.7%, respectively. The US stock market was not open on Monday due to the Memorial Day holiday.
These moves follow the Dow and S&P 500’s best weekly gains since November 2020.
The Dow closed up 6.2% for the week, ending an eight-week losing streak. The S&P 500 index gained 6.5% and the Nasdaq gained 6.8% for the week, ending positive after seven consecutive weeks of decline. Steady earnings from the retail sector, as well as an inflation report suggesting prices could drop, lifted investor sentiment.
Part of last week’s gains came on Friday, when the Dow rose more than 550 points and the S&P 500 gained 2.5%. Meanwhile, the Nasdaq rose 3.3%, boosted by solid reports from technology companies, as well as a drop in 10-year Treasury yields.
Still, traders continue to weigh whether the rally will mark a bottom as stocks remain high. The Dow is down 10.1% from a 52-week high, the S&P 500 is down 13.7% and the Nasdaq is down about 25.2%.
“We could see some sharp declines on stocks that don’t represent a real turning point for the market,” said Ryan Grabinski, chief investment strategist at Strategas. . “The building of a bear market is a process and we could still decline further.”
Traders will be looking more at the company’s quarterly earnings during a shortened holiday week. Salesforce, HP and Victoria’s Secret are expected to report earnings on Tuesday after the bell.
