Stock futures fall as Wall Street seeks to stabilize after rollercoaster week

Stock futures fall as Wall Street seeks to stabilize after rollercoaster week

Traders on the floor of the NYSE, May 6, 2022.

Source: NYSE

Stock futures fell on Sunday evening as traders looked for the market to find its footing after a dramatic week of trading.

Futures contracts linked to the Dow Jones Industrial Average fell 124 points, or 0.4%. S&P 500 futures lost 0.6%, while those of the Nasdaq 100 lost 0.7%.

Last week, the Nasdaq Composite lost 1.54%, while the S&P 500 and the Dow fell 0.21% and 0.24%, respectively. It was the sixth straight week of loss for the Dow and the fifth straight for the other two major indexes.

While the week’s cumulative moves weren’t out of the ordinary, some of the daily swings were jaw-dropping. The Dow had its best day since 2020 on Wednesday, but then erased all those gains and more on Thursday.

Wednesday’s short-lived rally came after Federal Reserve Chairman Jerome Powell said the central bank was not considering a 75 basis point rate hike in upcoming meetings. Stocks and bonds rallied on the comment, but reversed course on Thursday.

On Friday, billionaire hedge fund manager David Tepper told CNBC’s Scott Wapner that Powell’s statement was a “direct error” that contributed to market volatility.

The first-quarter earnings season is slowing, but there are several notable reports ahead of Monday’s opening bell, including Palantir and vaccine makers BioNTech and Novovax.

In other corporate news, Ford was looking to sell 8 million shares of Rivian Automotive over the weekend, sources told CNBC’s David Faber.

Investors will also keep an eye on the war in Ukraine. The first lady of the United States, Jill Biden, paid a surprise visit to the country on Sunday. The United States and the Group of Seven countries have announced that they will increase their short-term financial support for Ukraine as the war with Russia nears three months.

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