Nasdaq 100 futures fell slightly Monday night after stocks rose in the afternoon and before Big Tech earnings.
Futures linked to the technology-focused index fell 0.1 per cent. The Dow Jones Industrial Average futures and S&P 500 futures were slightly changed.
In ordinary trading on Monday, the Nasdaq Composite rose 1.3 percent. The Dow rose 0.7% after reducing its 500-point loss from earlier in the day, and the S&P 500 rose 0.6%.
The moves came as technology names like Microsoft, Alphabet and Meta Platforms rose in the afternoon, amid falling interest rates and ahead of an intense week of earnings for mega-cap technology stocks. Twitter also jumped after its board of directors accepted Tesla CEO Elon Musk’s offer to take it private.
The rejection was welcomed by investors after the shares ended the previous week with a sour tone, with the Dow falling to its fourth week in a row and the S&P and Nasdaq hitting a three-week losing streak on Friday. The technology-heavy Nasdaq is trying to break out of bear market territory and sits 19.8% off its record.
Whether it is a bottom remains to be seen. Edward Moya, senior market analyst at Oanda, told CNBC that there is still a lot of optimism around the US economy and said he expects a relief rally from here.
“One third of S&P reports [earnings] this week and you’ll probably see a lot of the same thing: lots of top and bottom line beats. Businesses will talk about margin pressure and pass on price increases to the consumer, but they will still emphasize that there is still overall optimism about the economy. “
Between the continuation of earnings beats and a quiet period from the Federal Reserve, there will likely be a relief rally in the market, Moya added.
“We are not going to get more nervous about the Fed tightening, because we will not hear much more about it before the May meeting,” he said.
Market manager Tom Lee, head of research at Fundstrat Global Advisors, said that although he had expected a “treacherous” first half of the year, the market has been worse than he himself had expected, with a worsening of inflation relative to market expectations. Nevertheless, he remains optimistic.
“When the bond market screams for the Fed to be a little tighter, it’s hard for stocks to hold up, and I think that’s what we’re going through now, but I do not think that means we have to sell. shares here either, “he said on CNBC’s” Closing Bell: Overtime “on Monday.
“The markets just want a sense of when this may end,” he added. “If inflation does not reach some kind of peak, it is worrying for the markets, but I also do not think it is set in stone that inflation will continue to be a problem even in the second half.”
Technological earnings start on Tuesday after the clock with Alphabet and Microsoft. Meta, Amazon and Apple will report later this week. UPS and 3M are also scheduled to report in the morning.
In economic data, investors expect fresh numbers for new home sales and consumer confidence Tuesday morning.