Traders on the floor of the NYSE, May 23, 2022.
S&P 500 futures rose late Monday as Wall Street tried to build on last week’s momentum.
Dow Jones Industrial Average futures gained 36 points, or 0.1%. S&P 500 and Nasdaq 100 futures rose 0.3% and 0.8% respectively. The US stock market did not open on Monday due to the Memorial Day holiday.
These moves follow the best weekly gains for the Dow Jones and S&P 500 since November 2020.
The Dow Jones closed up 6.2% for the week, ending an eight-week losing streak. The S&P 500 gained 6.5% and the Nasdaq gained 6.8% on the week, ending positive after seven continuous weeks of losses. Strong earnings in the retail sector, along with an inflation report indicating prices could fall, lifted investor sentiment.
Part of last week’s gains came on Friday, when the Dow gained more than 550 points and the S&P 500 jumped 2.5%. The Nasdaq, meanwhile, rose 3.3%, boosted by strong reports from tech companies, as well as a drop in the 10-year Treasury yield.
Still, traders continue to deliberate whether the rebound marks a bottom as stocks remain well below their highs. The Dow is 10.1% below its 52-week high, the S&P 500 is down 13.7% and the Nasdaq is down about 25.2%.
“We could get some big equity rallies that won’t be a real turning point for the market,” Strategas investment strategist Ryan Grabinski said in a Friday report. “Building a bear market is a process, and we could still go lower.”
Traders will take a closer look at quarterly corporate earnings in a holiday-shortened week. Salesforce, HP and Victoria’s Secret are expected to report results Tuesday after the bell.