Stock futures fall slightly to start August trading as market posts best month since 2020

Stock futures fall slightly to start August trading as market posts best month since 2020

Stock futures fell slightly after the best month of markets since 2020 as investors look ahead to another week of key earnings reports and economic data.

The Dow Jones Industrial Average futures fell 67 points, or 0.2%. S&P 500 futures are down about 0.2% and Nasdaq 100 futures are down 0.3%.

On Friday all the major indices rose, posting weeks of gains, capping what was the best month of the year so far and then some. The Dow gained 6.7% in July while the S&P 500 gained 9.1%. The Nasdaq Composite rose 12.4% as investors rushed into tech stocks, which suffered the most during this bear market. For each index, July performance was the best since 2020.

“We are seeing a recovery rally in equity markets as pessimism has reached extreme levels and longer-term interest rates have fallen again,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance.

“We believe the rally will continue until later in the summer, but as stock prices recover and it becomes increasingly clear we are headed for a more typical recession (z will have another selloff again,” he added. “But until then enjoy the rally as it is likely to catch a lot of people off guard.”

Investors have more economic data and corporate earnings to digest this week. On Monday, companies like Activision Blizzard, Devon Energy, Loews and others report earnings. Later in the week, Uber, Caterpillar, Starbucks, Eli Lilly, Amgen and others also have scheduled reports.

Additionally, the Bureau of Labor Statistics’ nonfarm payrolls report, released on Friday, will provide better insight into the strong job market. This year, solid job growth has led economists to say the US is not currently in a recession, even with two consecutive quarters of negative GDP.