Traders on the floor of the NYSE, September 7, 2022.
Source: NYSE
Stock futures were mixed on Monday morning after Wall Street ended another negative quarter and both the S&P 500 and Dow Jones Industrial Average ended their worst month since March 2020.
Nasdaq 100 futures fell 0.52% while futures linked to the S&P 500 lost 0.14%. Dow Jones Industrial Average futures rose 0.07% or 21 points.
Friday ended a negative month and quarter for all major averages, with the Dow falling 500.10 points, or 1.71%, to close below 29,000 for the first time since November 2020.
During the quarter, the Dow fell 6.66% to snap a three-quarter losing streak for the first time since the third quarter of 2015. Both the S&P and Nasdaq Composite fell 5.28% and 4.11 %, respectively, to end its third consecutive negative quarter. for the first time since 2009.
The Dow lost 8.8% in September, while the S&P 500 and Nasdaq Composite lost 9.3% and 10.5%, respectively. All major averages also posted their sixth negative week in seven.
Heading into the new quarter, all S&P 500 sectors are at least 10% off their 52-week highs. Nine sectors ended the quarter in negative territory. Discretionary consumption was the one that had the best performance, with more than 4.1%.
In the fourth quarter, high inflation and the Federal Reserve’s intention to halt price increases, regardless of what it means for the economy, will likely continue to weigh on markets, said Truist’s Keith Lerner. Oversold conditions, however, also make the market vulnerable to a strong short-term bounce on good news, he added.
“I think we could be setting ourselves up for some kind of suspension, but the underlying trend right now is still a downtrend and choppy waters to continue,” Lerner said.
On the economic front, Markit PMI and ISM manufacturing data are due for release on Monday along with construction spending.