Stock futures are flat after Nasdaq issued the worst month since 2008

Traders work on the floor of the New York Stock Exchange.

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Futures on the US stock index were flat during overnight trading on Sunday, after the Nasdaq Composite Index released its worst month since 2008, pressured by rising prices, violent inflation and subversive earnings from some of the major technology companies.

Futures contracts linked to the Dow Jones Industrial Average fell 11 points. S&P 500 futures were flat, while Nasdaq 100 futures fell 0.2 percent.

The major averages sank Friday, accelerating April losses. The Dow fell 939 points during the session, bringing its loss last week to around 2.5%. It was the 30-week benchmark for the fifth negative week in a row.

The S&P 500 fell 3.63% on Friday, its worst day since June 2020, posting its fourth negative week in a row for the first time since September 2020. Nasdaq also had a fourth week in a row with losses after a fall of 4.2% last Friday. . Both indices recorded their lowest closing levels in the year.

“This has become a classic trader market as increases in volatility and increasingly bearish headlines resonate,” said Quincy Krosby, chief equity strategist at LPL Financial.

The Dow and S&P 500 are coming out of their worst month since March 2020, when the pandemic took hold. The Dow closed 4.9% lower in April, while the S&P fell 8.8%.

Sales were even more extreme in the technology-heavy Nasdaq Composite, which fell 13.26% in April, its worst month since October 2008. The sharp decline follows underperformance from major technology companies, including Amazon, Netflix and Meta Platforms.

“[D]”Designated guidance from technology giants Amazon and Apple has exacerbated concerns that a more hawkish Fed, combined with increasingly difficult supply chain problems and rising energy prices, could make the hope of a ‘soft landing’ from the Fed more elusive,” Krosby said.

Netflix has fallen 49% over the past month, with Amazon and Meta losing 24% and 10.8% respectively. Tech stocks have been hit particularly hard since their often elevated valuations and promises of future growth are starting to look less attractive in an environment of rising prices.

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Investors are looking forward to Wednesday, when the Federal Open Market Committee will issue a statement on monetary policy. The decision will be announced at. 14.00 ET, where Federal Reserve Chairman Jerome Powell holds a press conference at. 14.30

“Rising cost pressures and uncertain prospects from the biggest technology names have made investors excited … and investors are unlikely to be comfortable with the Fed, which is largely expected to deliver a 50 basis point increase along with a hawkish message in next week.” said Charlie Ripley, senior investment strategist at Allianz Investment Management.

Another important economic indicator comes Friday when the April job report is released.

The earnings season is now more than halfway through, but a number of companies are ready to announce results in the coming week, including a host of consumer-focused restaurant and travel companies.

Expedia, MGM Resorts, Pfizer, Airbnb, Starbucks, Lift, Marriott, Yum Brands, Uber eBay and TripAdvisor are just some of the names on the deck.

Of the 275 S&P 500 companies that have reported earnings so far, 80% have beaten earnings estimates by 73% above revenue expectations, according to data from Refinitiv.

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