U.S. stocks look set to snap a five-session losing streak, as indicated by trading in the major index futures. Bargain hunting could generate some buying interest even as traders remain concerned about growth and interest rates.
On Monday, the major U.S. averages opened slightly lower but turned modestly higher in early trading. The modest optimism later gave way to deep-rooted pessimism concerning the economy, sending the averages lower for the session.
The Dow Industrials pulled back to its lowest level since Nov. 19, 2020, and the Nasdaq Composite closed at a 2-year low. Meanwhile, the S&P 500 Index closed at its worst level since Dec.14, 2020, although, on an intra-day basis, it is still holding above the June 17 low.
All the sector indices ended in the red, with the exception of consumer staples, which closed marginally higher. Utility, energy and real estate stocks saw notable weakness during the session.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | -0.60% | 10,802.92 | |
| S&P 500 Index | -1.03% | 3,655.04 | |
| Dow Industrials | -1.11% | 29,260.81 |
U.S. stock Here’s a peek into index futures trading:
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | +1.40% | |
| S&P 500 Futures | +1.20% | |
| Dow Futures | +1.0% | |
| R2K Futures | +0.88% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) was adding 1.17% to $368.56 and Invesco QQQ Trust(NASDAQ:QQQ) was moving up 1.32% to $277.98, according to Benzinga Pro data.
Ryan Detrick, chief market strategist of Carson Group, shared encouraging data, which showed that six of the past 17 bear markets since World War II ended in October. Referring to the average S&P 500 returns per day between 1950 and 2021, the analyst noted that Monday marked the end of seasonal weakness.
This is one of the worst two week selloffs of all-time and it took place right in the middle of what is historically the worst time of the year.
— Ryan Detrick, CMT (@RyanDetrick) September 27, 2022
We've been talking about this a lot and the good news is today is the end of the seasonal weakness. pic.twitter.com/NyzoOKePPl
Chicago Federal Reserve President Charles Evans said while speaking to CNBC’s “Squawk Box Europe” on Tuesday he is a “little nervous” about the central bank not waiting long enough to adequately assess the impact of the rate hikes. He remains cautiously optimistic about the economy avoiding a recession, provided there were no further external shocks.
Fed Chairman Jerome Powell is scheduled to take part in a panel discussion on digital currencies at 7:30 a.m. ET. St. Louis Fed President James Bullard is scheduled to speak on the U.S. economy and monetary policy and will participate in a panel at the Barclays-CEPR International Monetary Policy Forum at 9:55 a.m. ET.
Two housing market readings are due for the day, including the S&P CoreLogic Case-Shiller house price index for July, at 9 a.m. ET, and the Commerce Department’s new homes sales report for August, at 10 a.m. ET. Economists, on average, expect a slowdown in the month-over-month pace of new home sale decline from 12.60% to 2.20%.
Also, at 10 a.m. ET, the Conference Board’s U.S. consumer confidence index for September is due, with the consensus calling for an increase in the index from 103.2 in August to 104.3 in September.
See Also: S&P 500 Circles New 2022 Lows Following Latest Fed Rate Hike: Is A Recession Inevitable?
Stocks In Focus:
Twitter, Inc. (NYSE:TWTR) shares were rising over 1% after reports suggested the depositions of Elon Musk and Parag Agrawal have been postponed.
Tesla, Inc. (NASDAQ:TSLA) could be on the move after Electrek reported that the company is expecting a “high-volume” end of the quarter, citing an internal email.
Jabil Inc. (NYSE:JBL) and United Natural Foods, Inc. (NYSE:UNFI) are among the companies releasing their quarterly results ahead of the market open.
Faraday Future Electric Inc. (NASDAQ:FFIE) shares were advancing in follow-through buying after the company announced Monday it has resolved the dispute with a major shareholder and secured new financing.
Commodity, Global Markets:
Crude oil futures were advancing following a two-session slide but were holding at the sub-$80 level.
Asian stocks closed on a mixed note notwithstanding the negative cues from Wall Street overnight. The Chinese and Hong Kong took heart from the People’s Bank Of China’s decision to inject 113 billion yuan into the system, marking the biggest short-term cash injection in seven months, Reuters reported.
The Bank of Japan announced it would purchase Japanese government bonds in a special operation on Tuesday to bring down yields.
The New Zealand, Malaysian, Singaporean, Indonesian and Indian markets ended lower.
After opening higher, the European markets are seen mixed in late morning trading.
