Dow futures sink around 200 points as Friday’s rout on Wall Street looks set to continue

Traders work on the floor of the New York Stock Exchange (NYSE) on August 26, 2022 in New York City.

Spencer Platt | Getty Images

Stock futures fell Monday morning as investors tried to shake off a sharp decline in stocks late last week.

Dow Jones Industrial Average futures slid 240 points, or about 0.75%. Those of the S&P 500 and the Nasdaq 100 fell 0.92% and 1.3% respectively.

Movements in futures contracts occur after a Wall Street’s brutal sale on Fridaywhen Federal Reserve Chairman Jerome Powell’s short, blunt remarks in Jackson Hole, Wyoming, seemed to dash hopes that the central bank would change its aggressive course of rate hikes in the coming months.

The Dow Jones fell 1,008 points, or just over 3%, for its worst day since May. The S&P 500 and Nasdaq Composite fell 3.4% and 3.9%, respectively, for their worst days since June. The decline erased August’s gains for all three averages.

“Investors again reduced their recent Risk-On positioning, supporting our view that it is far too early to qualify their recent risk appetite as a more permanent position, and now a position more likely to have cost them very dear,” Rick Bensignor of Bensignor Investment Strategies set out in a note to clients.

The week ahead will bring more speeches from the Fed, including Vice Chairman Lael Brainard on Tuesday, ahead of the August nonfarm payrolls report on Friday.

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