Traders on the floor of the New York Stock Exchange.
Source: NYSE
U.S. stock futures fell slightly Sunday night as Wall Street sought to bounce back from a lost week.
Forward contracts linked to the Dow Jones industrial average fell 78 points or 0.2%. Those for the S&P 500 and Nasdaq 100 lost 0.3% and 0.4% respectively.
The move in futures contracts comes after the three major indices lost ground last week. The Dow and S&P 500 slipped on Friday to end the week with 0.5% and 0.8% respectively, breaking two weeks of winning streaks. The Nasdaq Composite rose Friday but still ended the week with a 0.8% loss.
The battle for equities took place when bond yields jumped again last week, putting the technology and growth stocks under pressure that led the market back from its pandemic sell-off last year. On Sunday, the futures contract for the price of ten-year treasury note rose, indicating lower returns.
Even with the weakness last week, the S&P 500 and Dow are still near record highs, and the Nasdaq is not too far away. Darrell Cronk, chief investment officer of Wells Fargo’s wealth and investment management, said the stock market was still on track for a multi-year climb.
‘If you go off the list and start putting boxes with a check-check-check-check, you’ll look at it in a vacuum … and say it looks like an early recovery cycle of about a year in which it probably has a number of years that still have to run, ”Cronk said.
Optimism about the markets and the path of the US economy has increased as vaccines roll out across the country, with the pace at which Americans have been climbing shots over the past few weeks. However, several states are seeing an increase in Covid-19 cases.
Over the weekend, the industrial sector delivered a huge chunk of corporate news. Canadian Pacific Railway has announced it is buying Kansas City Southern in a $ 25 billion deal, creating a railroad giant that connects Canada, the US and Mexico.
In terms of the economic data, investors will get a look at the housing market again on Monday when the National Association of Realtors announces existing home sales for February. Economists polled by Dow Jones predict a 2.8% decline.