Stock futures rise slightly after S&P 500 hits new low for the year

Stocks can stabilize once negative earnings revisions end, says Veritas' Greg Branch

Stock futures ticked up on Tuesday evening after a relief rally failed during regular trading hours and the S&P 500 hit a new intraday low for the year.

Futures tied to the Dow Jones Industrial Average added 66 points, or about 0.2%. S&P 500 futures gained 0.2%, and Nasdaq 100 futures rose 0.3%.

During Tuesday’s session, stocks gave up a large early gain and the S&P 500 fell below its intraday low from June, which was the previous market bottom. The Dow and S&P 500 closed lower for the sixth straight day, while the Nasdaq Composite ground higher by 0.25%. All three major averages are now in bear market territory.

Several technical metrics show that the stock market may be oversold, but some on Wall Street are worried that investors have not priced in an earnings slowdown and the impact of the Federal Reserve’s rate hikes. The S&P 500 breaking below its previous low is a key indicator for some that stocks still have further to fall.

“I think we’re certainly not at the end of the road in terms of pricing in the full recessionary outcome. … We really need to get to dirt cheap valuations on equities, and we’re not quite there yet,” Anastasia Amoroso, chief investment strategist at iCapital, said on Tuesday’s “Closing Bell.

On Wednesday, investors will get an updated look at the housing market with pending home sales from August.

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