November 29, 2022

Raven Tribune

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Stock futures drop after best week for S&P 500 since June

The S&P 500 fell on Monday as Wall Street took a breather after its best week since June

The S&P 500 index traded lower on Monday after posting its biggest weekly gain in nearly five months on the back of easing inflation data.

The broad market index is down 0.6%, and the Nasdaq tech composite index is down 1.2%. The Dow Jones Industrial Average fluctuated above the flat line.

The S&P tech sector is down about 1%, having posted its best week since April 2020 in the previous session.

The S&P 500 rose 5.9% to end the previous week, its best weekly advance since June. Investors cheered a softer-than-expected inflation reading and bet the Federal Reserve will soon slow its aggressive tightening campaign. The heavy Nasdaq Composite rose 8.1% last week for its best week since March. The Dow Jones Premium Index advanced 4.2%.

“There has been a marked shift in the market, with investors increasingly taking risks across asset classes,” said Mark Hackett, head of investment research at Nationwide. “Technical indicators have improved significantly, with investor sentiment, momentum, breadth, and risk factors showing a marked improvement.”

However, the Fed has given few indications that it may deviate from its hawkish course anytime soon. Fed Governor Christopher Waller said Sunday, “We’re at a point we can start thinking about maybe going to a slower pace.” But, “We’re not easing….stop paying attention to the pace and start paying attention to where the end point is going to be. Until we bring down inflation, that end point is still the ways.”

The third-quarter earnings season is set to continue, with a heavy focus on retail. Major retailers Walmart, Home Depot, Target, Lowe’s, Macy’s and Kohl’s are due to publish numbers this week.

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