The United States equity futures slipped in pre-market trading. Tuesday despite seeing a bounce last week that snapped. The longest losing streak for the S&P 500 in over 20 years. Futures that had been tied to the stock market index took a 0.3% dip. Dow Jones Industrial futures fell 120 points, equating to 0.4%. Contracts tied to the Nasdaq Composite traded near the flatline.
The moves come after all three indexes logged weekly gains of more than 6%. Making better progress after seven consecutive losing weeks for the S&P 500. Nasdaq and eight weeks of losses for the Dow.
Despite the good news, oil futures charged higher as reports started going around of Chinese. The authorities planning to end a two-month COVID-19 lockdown in Shanghai. EU leaders agreeing to stop purchases of crude oil and petroleum products from Russia. WTI crude oil futures climbed 3.6% to the price of $118.70. In contrast, Brent crude oil futures rose 3.7% to $128.83.
The latest rally in Wall Street follows a favorable batch of quarterly earnings in recent trading sessions. The temporarily helped alleviate concerns over the inflation’s toll on corporate profits. The recent economic data that prices were peaking also played a role in buoy sentiment.
However, stocks are incredibly down for the year, prompting strategists to debate whether they’ve reached rock bottom or not.
“Last week’s strength will prove to be another bear market rally in the end. It is said Morgan Stanley CIO Michael Wilson in a note.
Although they were able to recover some losses. Stocks have had a turbulent month that was wrought by concerns over decades-high inflation. Fears surrounding the Federal Reserve’s efforts to rein in the surging prices. It is raising interest rates may tip the economy into a recession.
“The primary rationale ascribed to this particular rally beyond just an oversold bounce. It that the Fed may be contemplating a pause in September,” Wilson added. He also noted that “inflation remains too high for the Fed’s liking. So whatever pivot investors might be hoping for will be too immaterial to change the downtrend in equity prices.”
Investors are expected to take their cue from a plethora of key employment data this week, including the all-important May jobs report due Friday.