Stock futures fell Monday following the market’s best month since 2020 as investors look ahead to another week of key earnings reports and economic data.
Dow Jones Industrial Average futures traded down 49 points, or 0.15%. S&P 500 futures shed around 0.27% and Nasdaq 100 futures were 0.17% lower. Technology shares such as Apple, Microsoft, and Alphabet were lower, leading the broader market down.
On Friday, all major indexes gained, posting winning weeks and capping off the best month of the year so far and then some. The Dow gained 6.7% in July, while the S&P 500 added 9.1%. The Nasdaq Composite rose 12.4% as investors rushed into the tech stocks beaten up the most during this bear market. For each index, July’s performances were the best since 2020.
“We are seeing a relief rally in the stock market, as pessimism reached extreme levels, and as longer-term interest rates have been coming back down,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
“We believe the rally will last until later in the summer, but as stock prices rebound and it becomes increasingly clear that we are headed for a more typical recession (e.g. one with higher unemployment and nominal GDP dropping close to zero or negative), markets will again have another selloff,” he added. “But until that time, enjoy the rally as it’s likely catching many people off guard.”
