Stock futures slide as Wall Street appears to bounce back from a lost week
Traders on the floor of the New York Stock Exchange.
US stock futures fell slightly on Sunday evening as Wall Street appeared to be recovering from a lost week.
Futures linked to the Dow Jones Industrial Average fell 78 points, or 0.2%. Those for the S&P 500 and Nasdaq 100 lost 0.3% and 0.4%, respectively.
The movement in futures comes after the three major indices lost ground last week. The Dow and S&P 500 slid on Friday, ending the week 0.5% and 0.8% respectively, breaking two-week winning streaks. The Nasdaq Composite rose on Friday but ended the week down 0.8%.
The struggles for stocks came as bond yields rose again last week, putting pressure on tech and growth stocks that dragged the market back from its pandemic-triggered sell-off last year. On Sunday, futures rose at the price of the 10-year Treasury note, indicating lower yields.
Despite last week’s weakness, the S&P 500 and Dow are still near record highs, and the Nasdaq is not too far away. Darrell Cronk, chief investment officer of Wells Fargos Wealth and Investment Management, said the stock market was still on track for multi-year growth.
“If you went down the list and started putting check-check-check-check boxes, you’d look at this in a vacuum … and say it looks like an early recovery cycle that is about a year and likely a number still has years to go, “said Cronk.
Optimism about markets and the path of the US economy has increased as vaccines roll out across the country. In the past few weeks, the pace of the Americans has increased. However, there has been an increase in Covid-19 cases in several states.
Over the weekend, the industrial sector produced an important corporate news item. The Canadian Pacific Railway announced that it is buying $ 25 billion worth of Kansas City Southern, creating a railroad giant connecting Canada, the United States and Mexico.
In terms of economic data, investors will take another look at the property market on Monday when the National Association of Realtors releases existing home sales for February. Economists polled by Dow Jones forecast a decline of 2.8%.