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Stock Futures Plummet as Investors Grapple with Volatility in Markets
Stock Analysis & Ideas

Stock Futures Plummet as Investors Grapple with Volatility in Markets

U.S. stock futures were trending lower in the early morning hours on Monday as investors tried to grapple with last week’s volatility in the stock market.

Futures on the Dow Jones Industrial Average (DJIA), S&P 500 (SPX), and Nasdaq 100 (NDX) were in red as of 7:34 a.m. EST, on Monday. The indices recorded losses of 1.7%, 2.09%, and 2.63%, respectively.  

On Friday, risk averse sentiment brewed across markets as hopes from U.S. jobs data to alter the Fed’s rate-increase and quantitative-tightening plans to some extent was diminished. The S&P 500 Index was knocked down yet again recording its longest streak of weekly losses since 2011. 

Last week, the major U.S. stock market indices ended in the red, with the Dow ending 0.24% lower, the S&P 500 losing 0.21%, and the tech-heavy Nasdaq 100 plunging 1.54%. Disappointingly, the Dow recorded losses for its sixth consecutive week, while was the fifth straight week for the other two major benchmarks. 

Chinese Premier Li Keqiang’s warnings related to the nation’s rocky employment situation due to the resurgence of COVID-19 fueled the global economic fire over the weekend. 

In the latest Russia-related developments, the G7 countries said, “We commit to phase out our dependency on Russian energy, including by phasing out or banning the import of Russian oil…We will work together and with our partners to ensure stable and sustainable global energy supplies and affordable prices for consumers.” 

Increasing inflationary pressures, the Federal Reserve’s tightening monetary policy, and the resurgence of COVID-19 in China have raised fears among investors. Meanwhile, five-year Treasury yields jumped to their highest level since 2008. 

Nevertheless, on the economic front, investors will assess developments on the back of the latest data on wholesale inventories for March. 

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