Traders on the NYSE floor, September 7, 2022.
Source: New York SE
Stock futures edged higher in overnight trade on Sunday after Wall Street wrapped up another negative quarter and both the S&P 500 and Dow Jones Industrial Average ended their worst month since March 2020.
Futures linked to the Dow Jones Industrial Average gained 100 points, or 0.35%, while the S&P 500 gained 0.22%. Nasdaq 100 futures traded unchanged.
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.
For the quarter, the Dow fell 6.66%, posting a three-quarters 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, ending their 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 fell 9.3% and 10.5%, respectively. All major averages also recorded their sixth negative week in seven.
As the new quarter begins, all S&P 500 sectors are at least 10% below their 52-week highs. Nine sectors ended the quarter down. Consumer discretionary was the best performer, up more than 4.1%.
In the fourth quarter, elevated inflation and the Federal Reserve’s intention to bring rising prices to a halt, regardless of what that means for the economy, will likely continue to weigh on markets, Truist’s Keith Lerner said. However, oversold conditions also leave the market vulnerable to a strong near-term bounce on good news, he added.
“I think we might be prepared for some kind of reprieve, but the underlying trend at this point is still a downtrend and choppy waters that will continue,” Lerner said.
On the economic front, Markit PMI and ISM manufacturing data are set to be released along with construction spending on Monday.