Stock futures were higher on Monday night after the market started the week by continuing its dramatic September decline.
S&P 500 futures gained 0.77% and Nasdaq 100 futures rose 0.89%. Those tied to the Dow Jones Industrial Average advanced 208 points, or about 0.71%.
Futures movement comes next five consecutive days of losses for stocksthe S&P 500 closing Monday at its 2022 low. The Dow Jones lost more than 300 points on Monday, putting it in a bear market after falling more than 20% below its all-time high.
Technical indicators show that the sell-off was historic. According to Bespoke Investment Group, the 10-day forward line for the S&P 500 has hit an all-time high, meaning market breadth is at its worst in at least 32 years.
The latest round of selling appears to have several catalysts, including an aggressive Federal Reserve and soaring interest rates, which in turn have rattled currency markets. Monday, the The British pound hit an all-time high against the dollar, confusing investors on both sides of the Atlantic.
“Generally American investors wouldn’t care too much about something like this, and especially more recently. And so that tells me there’s this fear now that grips investors much more than before. That will in turn lead at a time of capitulation where we are truly at our lowest,” said Max Gokhman, CIO at AlphaTrAI.
On Tuesday, investors will get several new economic data, including consumer confidence in September, durable goods orders in August and house prices in July. Wall Street is increasingly concerned that the Fed’s six-month fight against inflation will push the economy into a recession.