Market Snapshot: U.S. stock futures consolidate after last week’s rally

by | Oct 24, 2022 | Stock Market

U.S. stock futures were pointing to a softer start on Monday, consolidating last week’s gains as a slate of major tech company earnings await.What’s happening
Futures on the Dow Jones Industrial Average
fell 99 points, or 0.3%, to 31024.

Futures on the S&P 500
dropped 13.5 points, or 0.4%, to 3751.

Futures on the Nasdaq 100
decreased 56.5 points, or 0.5%, to 11302.

On Friday, the Dow Jones Industrial Average
rose 749 points, or 2.47%, to 31083, the S&P 500
increased 87 points, or 2.37%, to 3753, and the Nasdaq Composite
gained 245 points, or 2.31%, to 10860.

The S&P 500 rose nearly 5% last week.What’s driving markets A report in The Wall Street Journal that the Federal Reserve might slow the pace of rate hikes in December helped contribute to Friday’s showing. Two regional Fed presidents, Charles Evans and Mary Daly, warned that rates could go too high. No comments are expected this week ahead of the Fed’s two-day rate-setting meeting that ends Nov. 2. Markets also are gearing up for a wave of earnings, including from tech giants Alphabet
Meta Platforms
and Amazon
this week. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, points out that the correlation between S&P 500 stocks is at the highest levels since July 2020, which “makes this week’s Big Tech results even more crucial for the overall market mood, as Apple, Microsoft, Alphabet and Amazon, together, stand for 20% of the S&P 500’s total valuation.” U.S.-listed Chinese companies including Alibaba
are expected to see pressure after a tumble overnight in the Hang Seng
after Chinese President Xi Jinping stacked the Chinese Communist Party leadership with close allies. Tesla
felt pressure after Bloomberg reported the electric vehicle maker cut prices in China. More positively, the pound
and U.K. gilts rose after former Prime Minister Boris Johnson said he would not run for prime minister, making ex-hedge-fund manager and former Chancellor of the Exchequer Rishi Sunak the likely next leader of the world’s number-six economy.

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